2023

Instructions for Form 709

United States Gift (and Generation-Skipping Transfer) Tax Return

For gifts made during calendar year 2023

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code unless 

otherwise noted.

Contents Page

General Instructions ......................... 1

Purpose of Form ......................... 1

Who Must File .......................... 2

When To File ........................... 5

Where To File ........................... 5

Amending Form 709 ...................... 5

Adequate Disclosure ...................... 5

Penalties .............................. 6

Joint Tenancy ........................... 6

Transfer of Certain Life Estates Received 

From Spouse ......................... 6

Specific Instructions ......................... 6

Part 1—General Information ................ 6

Schedule A. Computation of Taxable Gifts ...... 8

Gifts Subject to Both Gift and GST Taxes ....... 9

Schedule B. Gifts From Prior Periods ......... 14

Schedule C. Portability of Deceased Spousal 

Unused Exclusion (DSUE) Amount and 

Restored Exclusion Amount .............. 18

Schedule D. Computation of GST Tax ......... 19

Part 2—Tax Computation (Page 1 of Form 

709) .............................. 21

Signature ............................. 22

Future Developments

For the latest information about developments related to Form 

709 and its instructions, such as legislation enacted after they 

were published, go to IRS.gov/Form709.

For Gifts Made Use Revision of

After and Before Form 709 Dated

– – – – – January 1, 1982 November 1981

December 31, 1981 January 1, 1987 January 1987

December 31, 1986 January 1, 1989 December 1988

December 31, 1988 January 1, 1990 December 1989

December 31, 1989 October 9, 1990 October 1990

October 8, 1990 January 1, 1992 November 1991

December 31, 1992 January 1, 1998 December 1996

December 31, 1997 – – – – – *

* Use the corresponding annual form.

What's New

• The annual gift exclusion for 2023 is $17,000. See Annual 

Exclusion, later.

• For gifts made to spouses who are not U.S. citizens, the 

annual exclusion has increased to $175,000. See 

Nonresidents Not Citizens of the United States, later.

• The top rate for gifts and generationskipping transfers remains at 40%. See Table for Computing 

Gift Tax.

• The basic credit amount for 2023 is $5,113,800. See Table 

of Basic Exclusion and Credit Amounts.

• The applicable exclusion amount consists of the basic 

exclusion amount ($12,920,000 in 2023) and, in the case of 

a surviving spouse, any unused exclusion amount of the last 

deceased spouse (who died after December 31, 2010). The 

executor of the predeceased spouse's estate must have 

elected on a timely and complete Form 706 to allow the 

donor to use the predeceased spouse's unused exclusion 

amount.

• Digital assets. A new question regarding digital assets 

appears on Line 20. See Digital assets and Line 20. Digital 

Assets, later, for information on transfers involving digital 

assets. Do not leave this question unanswered. The 

question must be answered by all taxpayers, not just 

taxpayers who made transfers involving digital assets.

Photographs of Missing Children

The IRS is a proud partner with the National Center for Missing & 

Exploited Children® (NCMEC). Photographs of missing children 

selected by the Center may appear in instructions on pages that 

would otherwise be blank. You can help bring these children 

home by looking at the photographs and calling 

1-800-THE-LOST (1-800-843-5678) if you recognize a child.

General Instructions

Purpose of Form

Use Form 709 to report the following.

• Transfers subject to the federal gift and certain 

generation-skipping transfer (GST) taxes and to figure the 

tax due, if any, on those transfers.

• Allocation of the lifetime GST exemption to property 

transferred during the transferor's lifetime. (For more details, 

see Schedule D, Part 2—GST Exemption Reconciliation, 

later, and Regulations section 26.2632-1.)

All gift and GST taxes must be figured and filed on a 

calendar year basis. List all reportable gifts made during 

the calendar year on one Form 709. This means you 

must file a separate return for each calendar year a reportable 

gift is given (for example, a gift given in 2023 must be reported 

on a 2023 Form 709). Do not file more than one Form 709 for any 

1 calendar year.

How To Complete Form 709

1. Determine whether you are required to file Form 709.

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Aug 18, 2023 Cat. No. 16784X
2. Determine what gifts you must report.

3. Decide whether you and your spouse, if any, will elect to 

split gifts for the year.

4. Complete lines 1 through 19 of Part 1—General Information.

5. List each gift on Part 1, 2, or 3 of Schedule A, as 

appropriate.

6. Complete Schedules B, C, and D, as applicable.

7. If the gift was listed on Part 2 or 3 of Schedule A, complete 

the necessary portions of Schedule D.

8. Complete Schedule A, Part 4.

9. Complete Part 2—Tax Computation.

10. Sign and date the return.

Make sure to complete page 1 and the applicable 

schedules in their entirety. Returns filed without entries in 

each field will not be processed.

Remember, if you are splitting gifts, your spouse must 

sign line 18 in Part 1—General Information.

Who Must File

In general. If you are a citizen or resident of the United States, 

you must file a gift tax return (whether or not any tax is ultimately 

due) in the following situations.

• If you gave gifts to someone in 2023 totaling more than 

$17,000 (other than to your spouse), you probably must file 

Form 709. But see Transfers Not Subject to the Gift Tax and 

Gifts to Your Spouse, later, for more information on specific 

gifts that are not taxable.

• Certain gifts, called future interests, are not subject to the 

$17,000 annual exclusion and you must file Form 709 even if 

the gift was under $17,000. See Annual Exclusion, later.

• Spouses may not file a joint gift tax return. Each individual is 

responsible to file a Form 709.

• You must file a gift tax return to split gifts with your spouse 

(regardless of their amount) as described in Part 1—General 

Information, later.

• If a gift is of community property, it is considered made 

one-half by each spouse. For example, a gift of $100,000 of 

community property is considered a gift of $50,000 made by 

each spouse, and each spouse must file a gift tax return.

• Likewise, each spouse must file a gift tax return if they have 

made a gift of property held by them as joint tenants or 

tenants by the entirety.

• Only individuals are required to file gift tax returns. If a trust, 

estate, partnership, or corporation makes a gift, the 

individual beneficiaries, partners, or stockholders are 

considered donors and may be liable for the gift and GST 

taxes.

• The donor is responsible for paying the gift tax. However, if 

the donor does not pay the tax, the person receiving the gift 

may have to pay the tax.

• If a donor dies before filing a return, the donor's executor 

must file the return.

Who does not need to file. If you meet all of the following 

requirements, you are not required to file Form 709.

• You made no gifts during the year to your spouse.

• You did not give more than $17,000 to any one donee.

• All the gifts you made were of present interests.

Gifts to charities. If the only gifts you made during the year are 

deductible as gifts to charities, you do not need to file a return as 

long as you transferred your entire interest in the property to 

qualifying charities. If you transferred only a partial interest, or 

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transferred part of your interest to someone other than a charity, 

you must still file a return and report all of your gifts to charities.

Note. See Pub. 526, Charitable Contributions, for more 

information on identifying a qualified charity.

If you are required to file a return to report noncharitable gifts 

and you made gifts to charities, you must include all of your gifts 

to charities on the return.

Transfers Subject to the Gift Tax

Generally, the federal gift tax applies to any transfer by gift of real 

or personal property, whether tangible or intangible, that you 

made directly or indirectly, in trust, or by any other means.

The gift tax applies not only to the free transfer of any kind of 

property, but also to sales or exchanges, not made in the 

ordinary course of business, where value of the money (or 

property) received is less than the value of what is sold or 

exchanged. The gift tax is in addition to any other tax, such as 

federal income tax, paid or due on the transfer.

The exercise or release of a general power of appointment 

may be a gift by the individual possessing the power. General 

powers of appointment are those in which the holders of the 

power can appoint the property under the power to themselves, 

their creditors, their estates, or the creditors of their estates. To 

qualify as a power of appointment, it must be created by 

someone other than the holder of the power.

The gift tax may also apply to forgiving a debt, to making an 

interest-free or below-market interest rate loan, to transferring 

the benefits of an insurance policy, to certain property 

settlements in divorce cases, and to giving up some amount of 

annuity in exchange for the creation of a survivor annuity.

Bonds that are exempt from federal income taxes are not 

exempt from federal gift taxes.

Sections 2701 and 2702 provide rules for determining 

whether certain transfers to a family member of interests in 

corporations, partnerships, and trusts are gifts. The rules of 

section 2704 determine whether the lapse of any voting or 

liquidation right is a gift.

Digital assets. The gift tax applies to transfers of digital assets. 

Digital assets are any digital representations of value that are 

recorded on a cryptographically secured distributed ledger or 

any similar technology. For example, digital assets include 

non-fungible tokens (NFTs) and virtual currencies, such as 

cryptocurrencies and stablecoins. If a particular asset has the 

characteristics of a digital asset, it will be treated as a digital 

asset for federal transfer tax purposes.

Gifts to your spouse. You must file a gift tax return if you made 

any gift to your spouse of a terminable interest that does not 

meet the exception described in Life estate with power of 

appointment, later, or if your spouse is not a U.S. citizen and the 

total gifts you made to your spouse during the year exceed 

$175,000.

You must also file a gift tax return to make the qualified 

terminable interest property (QTIP) election described under 

Line 12. Election Out of QTIP Treatment of Annuities, later.

Except as described earlier, you do not have to file a gift tax 

return to report gifts to your spouse regardless of the amount of 

these gifts and regardless of whether the gifts are present or 

future interests.

Transfers Not Subject to the Gift Tax

Four types of transfers are not subject to the gift tax. These are:

• Transfers to political organizations,

• Transfers to certain exempt organizations,

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• Payments that qualify for the educational exclusion, and

• Payments that qualify for the medical exclusion.

These transfers are not “gifts” as that term is used on Form 709 

and its instructions. You need not file a Form 709 to report these 

transfers and should not list them on Schedule A of Form 709 if 

you do file Form 709.

Political organizations. The gift tax does not apply to a 

transfer to a political organization (defined in section 527(e)(1)) 

for the use of the organization.

Certain exempt organizations. The gift tax does not apply to a 

transfer to any civic league or other organization described in 

section 501(c)(4); any labor, agricultural, or horticultural 

organization described in section 501(c)(5); or any business 

league or other organization described in section 501(c)(6) for 

the use of such organization, provided that such organization is 

exempt from tax under section 501(a).

Educational exclusion. The gift tax does not apply to an 

amount you paid on behalf of an individual to a qualifying 

domestic or foreign educational organization as tuition for the 

education or training of the individual. A qualifying educational 

organization is one that normally maintains a regular faculty and 

curriculum and normally has a regularly enrolled body of pupils 

or students in attendance at the place where its educational 

activities are regularly carried on. See section 170(b)(1)(A)(ii) 

and its regulations.

The payment must be made directly to the qualifying 

educational organization and it must be for tuition. No 

educational exclusion is allowed for amounts paid for books, 

supplies, room and board, or other similar expenses that are not 

direct tuition costs. To the extent that the payment to the 

educational organization was for something other than tuition, it 

is a gift to the individual for whose benefit it was made, and may 

be offset by the annual exclusion if it is otherwise available.

Contributions to a qualified tuition program (QTP) on behalf of 

a designated beneficiary do not qualify for the educational 

exclusion. See Line B. Qualified Tuition Programs (529 Plans or 

Programs) in the instructions for Schedule A, later.

Medical exclusion. The gift tax does not apply to an amount 

you paid on behalf of an individual to a person or institution that 

provided medical care for the individual. The payment must be to 

the care provider. The medical care must meet the requirements 

of section 213(d) (definition of medical care for income tax 

deduction purposes). Medical care includes expenses incurred 

for the diagnosis, cure, mitigation, treatment, or prevention of 

disease, or for the purpose of affecting any structure or function 

of the body, or for transportation primarily for and essential to 

medical care. Medical care also includes amounts paid for 

medical insurance on behalf of any individual.

The medical exclusion does not apply to amounts paid for 

medical care that are reimbursed by the donee's insurance. If 

payment for a medical expense is reimbursed by the donee's 

insurance company, your payment for that expense, to the extent 

of the reimbursed amount, is not eligible for the medical 

exclusion and you are considered to have made a gift to the 

donee of the reimbursed amount.

To the extent that the payment was for something other than 

medical care, it is a gift to the individual on whose behalf the 

payment was made and may be offset by the annual exclusion if 

it is otherwise available.

The medical and educational exclusions are allowed without 

regard to the relationship between you and the donee. For 

examples illustrating these exclusions, see Regulations section 

25.2503-6(c).

Qualified disclaimers. A donee's refusal to accept a gift is 

called a disclaimer. If a person makes a qualified disclaimer of 

any interest in property, the property will be treated as if it had 

never been transferred to that person. Accordingly, the 

disclaimant is not regarded as making a gift to the person who 

receives the property because of the qualified disclaimer.

Requirements. To be a qualified disclaimer, a refusal to 

accept an interest in property must meet the following 

conditions.

1. The refusal must be in writing.

2. The refusal must be received by the donor, the legal 

representative of the donor, the holder of the legal title to the 

property disclaimed, or the person in possession of the 

property within 9 months after the later of:

a. The day the transfer creating the interest is made, or

b. The day the disclaimant reaches age 21.

3. The disclaimant must not have accepted the interest or any 

of its benefits.

4. As a result of the refusal, the interest must pass without any 

direction from the disclaimant to either:

a. The spouse of the decedent, or

b. A person other than the disclaimant.

5. The refusal must be irrevocable and unqualified.

The 9-month period for making the disclaimer is generally 

determined separately for each taxable transfer. For gifts, the 

period begins on the date the transfer is a completed transfer for 

gift tax purposes.

Annual Exclusion

The first $17,000 of gifts of present interest to each donee during 

the calendar year is subtracted from total gifts in figuring the 

amount of taxable gifts. For a gift in trust, each beneficiary of the 

trust is treated as a separate donee for purposes of the annual 

exclusion.

All of the gifts made during the calendar year to a donee are 

fully excluded under the annual exclusion if they are all gifts of 

present interest and they total $17,000 or less.

Note. For gifts made to spouses who are not U.S. citizens, the 

annual exclusion has been increased to $175,000, provided the 

additional (above the $17,000 annual exclusion) $158,000 gift 

would otherwise qualify for the gift tax marital deduction (as 

described in the Schedule A, Part 4, line 4, instructions, later).

Note. Only the annual exclusion applies to gifts made to a 

nonresident not a citizen of the United States. Deductions and 

credits are not considered in determining gift tax liability for such 

transfers.

A gift of a future interest cannot be excluded under the annual 

exclusion.

A gift is considered a present interest if the donee has all 

immediate rights to the use, possession, and enjoyment of the 

property or income from the property.

A gift is considered a future interest if the donee's rights to the 

use, possession, and enjoyment of the property or income from 

the property will not begin until some future date. Future interests 

include reversions, remainders, and other similar interests or 

estates.

A contribution to a QTP on behalf of a designated beneficiary 

is considered a gift of a present interest.

A gift to a minor is considered a present interest if all of the 

following conditions are met.

Instructions for Form 709 (2023) -3-
1. Both the property and its income may be expended by, or 

for the benefit of, the minor before the minor reaches age 

21.

2. All remaining property and its income must pass to the 

minor on the minor's 21st birthday.

3. If the minor dies before the age of 21, the property and its 

income will be payable either to the minor's estate or to 

whomever the minor may appoint under a general power of 

appointment.

The gift of a present interest to more than one donee as joint 

tenants qualifies for the annual exclusion for each donee.

Nonresidents Not Citizens of the United States

Nonresidents not citizens of the United States are subject to gift 

and GST taxes for gifts of tangible property situated in the United 

States. A person is considered a nonresident not a citizen of the 

United States if, at the time the gift is made, (1) was not a citizen 

of the United States and did not reside there, or (2) was 

domiciled in a U.S. territory and acquired citizenship solely by 

reason of birth or residence in the territory. Under certain 

circumstances, they are also subject to gift and GST taxes for 

gifts of intangible property. See section 2501(a).

If you are a nonresident not a citizen of the United States who 

made a gift subject to gift tax, you must file a gift tax return when 

any of the following apply.

• You gave any gifts of future interests.

• Your gifts of present interests to any donee other than your 

spouse total more than $17,000.

• Your outright gifts to your spouse who is not a U.S. citizen 

total more than $175,000.

Transfers Subject to the GST Tax

You must report on Form 709 the GST tax imposed on inter vivos 

direct skips. An inter vivos direct skip is a transfer made during 

the donor's lifetime that is:

• Subject to the gift tax,

• Of an interest in property, and

• Made to a skip person. (See Gifts Subject to Both Gift and 

GST Taxes, later.)

A transfer is subject to the gift tax if it is required to be 

reported on Schedule A of Form 709 under the rules contained 

in the gift tax portions of these instructions, including the split gift 

rules. Therefore, transfers made to political organizations, 

transfers made to certain exempt organizations, transfers that 

qualify for the medical or educational exclusions, transfers that 

are fully excluded under the annual exclusion, and most transfers 

made to your spouse are not subject to the GST tax.

Transfers subject to the GST tax are described in further 

detail in the instructions.

Certain transfers, particularly transfers to a trust, that are 

not subject to gift tax and are therefore not subject to the 

GST tax on Form 709 may be subject to the GST tax at a 

later date. This is true even if the transfer is less than the 

$17,000 annual exclusion. In this instance, you may want to 

apply a GST exemption amount to the transfer on this return or 

on a Notice of Allocation. However, you should be aware that a 

GST exemption may be automatically allocated to the gift if the 

trust that receives the gift is a “GST trust” (as defined under 

section 2632(c)). For more information, see Schedule D, Part 

2—GST Exemption Reconciliationand Schedule A, Part 

3—Indirect Skips and Other Transfers in Trust, later.

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Transfers Subject to an Estate Tax Inclusion 

Period (ETIP)

Certain transfers receive special treatment if the transferred 

property is subject to an ETIP. An ETIP is the period during 

which, should the donor die, the value of transferred property 

would be includible (other than by reason of section 2035) in the 

gross estate of the donor or the spouse of the donor. For 

transfers subject to an ETIP, GST tax reporting is required at the 

close of the ETIP.

For example, if A transfers a house to a qualified personal 

residence trust for a term of 10 years, with the remainder to A’s 

granddaughter, the value of the house would be includible in A’s 

estate if A died within the 10-year period during which A retained 

an interest in the trust. In this case, a portion of the transfer to the 

trust is a completed gift that must be reported on Part 1 of 

Schedule A. The GST portion of the transfer would not be 

reported until A died or A’s interest in the trust otherwise ended.

Report the gift portion of such a transfer on Schedule A, Part 

1, at the time of the actual transfer. Report the GST portion on 

Schedule D, Part 1, but only at the close of the ETIP. Use Form 

709 only to report those transfers where the ETIP closed due to 

something other than the donor's death. (If the ETIP closed as 

the result of the donor's death, report the transfer on Form 706, 

United States Estate (and Generation-Skipping Transfer) Tax 

Return.)

If you are filing this Form 709 solely to report the GST portion 

of transfers subject to an ETIP, complete the form as you 

normally would with the following exceptions.

1. Write “ETIP” at the top of page 1.

2. Complete only lines 1 through 6, 8, and 9 of Part 

1—General Information.

3. Complete Schedule D. Complete columns B and C of 

Schedule D, Part 1, as explained in the instructions for that 

schedule.

4. Complete only lines 10 and 11 of Schedule A, Part 4.

5. Complete Part 2—Tax Computation.

A direct skip that is subject to an ETIP is deemed to have 

been made only at the close of the ETIP. Any allocation 

of GST exemption to the transfer of property subject to 

an ETIP, whether a direct skip or an indirect skip, shall not be 

made until the close of the ETIP. The donor may prevent the 

automatic allocation of GST exemption by electing out of the 

automatic allocation rules at any time prior to the due date of the 

Form 709 for the calendar year in which the close of the ETIP 

occurs (whether or not any transfer was made in the calendar 

year for which the Form 709 was filed, and whether or not a Form 

709 would otherwise be required to be filed for that year).

Section 2701 Elections

The special valuation rules of section 2701 contain three 

elections that you can make only with Form 709.

1. A transferor may elect to treat a qualified payment right that 

the transferor holds (and all other rights of the same class) 

as other than a qualified payment right.

2. A person may elect to treat a distribution right held by that 

person in a controlled entity as a qualified payment right.

3. An interest holder may elect to treat as a taxable event the 

payment of a qualified payment that occurs more than 4 

years after its due date.

The elections described in (1) and (2) must be made on the 

Form 709 that is filed by the transferor to report the transfer that 

is being valued under section 2701. The elections are made by 

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-4- Instructions for Form 709 (2023)
attaching a statement to Form 709. For information on what must 

be in the statement and for definitions and other details on the 

elections, see section 2701 and Regulations section 

25.2701-2(c).

The election described in (3) may be made by attaching a 

statement to the Form 709 filed by the recipient of the qualified 

payment for the year the payment is received. If the election is 

made on a timely filed return, the taxable event is deemed to 

occur on the date the qualified payment is received. If it is made 

on a late-filed return, the taxable event is deemed to occur on the 

first day of the month immediately preceding the month in which 

the return is filed. For information on what must be in the 

statement and for definitions and other details on this election, 

see section 2701 and Regulations section 25.2701-4(d).

All of the elections may be revoked, but only with the consent 

of the IRS.

When To File

Form 709 is an annual return.

Generally, you must file Form 709 no earlier than January 1, 

but not later than April 15, of the year after the gift was made. 

However, in instances when April 15 falls on a Saturday, Sunday, 

or legal holiday, Form 709 will be due on the next business day. 

See section 7503.

If the donor died during 2023, the executor must file the 

donor's 2023 Form 709 not later than the earlier of:

• The due date (with extensions) for filing the donor's estate 

tax return; or

• April 15, 2024, or the extended due date granted for filing 

the donor's gift tax return.

Extension of Time To File

There are two methods of extending the time to file the gift tax 

return. Neither method extends the time to pay the gift or GST 

taxes. If you want an extension of time to pay the gift or GST 

taxes, you must request that separately. See Regulations section 

25.6161-1.

By extending the time to file your income tax return. Any 

extension of time granted for filing your calendar year 2023 

federal income tax return will also automatically extend the time 

to file your 2023 federal gift tax return. Income tax extensions are 

made by using Form 4868, Application for Automatic Extension 

of Time To File U.S. Individual Income Tax Return, or Form 2350, 

Application for Extension of Time To File U.S. Income Tax 

Return. You may only use these forms to extend the time for filing 

your gift tax return if you are also requesting an extension of time 

to file your income tax return.

By filing Form 8892. If you do not request an extension for your 

income tax return, use Form 8892, Application for Automatic 

Extension of Time To File Form 709 and/or Payment of Gift/

Generation-Skipping Transfer Tax, to request an automatic 

6-month extension of time to file your federal gift tax return. In 

addition to containing an extension request, Form 8892 also 

serves as a payment voucher (Form 8892-V) for a balance due 

on federal gift taxes for which you are extending the time to file. 

For more information, see Form 8892.

Private Delivery Services (PDSs)

Filers can use certain PDSs designated by the IRS to meet the 

“timely mailing as timely filing” rule for tax returns. Go to 

IRS.gov/PDS for the current list of designated services.

The PDS can tell you how to get written proof of the mailing 

date.

For the IRS mailing address to use if you're using a PDS, go 

to IRS.gov/PDSstreetAddresses.

PDSs can't deliver items to P.O. boxes. You must use the 

U.S. Postal Service to mail any item to an IRS P.O. box 

address.

Where To File

File Form 709 at the following address.

Department of the Treasury

Internal Revenue Service Center

Kansas City, MO 64999

If using a PDS, file at this address.

Internal Revenue Service

333 W. Pershing Road

Kansas City, MO 64108

Amending Form 709

If you find that you must change something on a return that has 

already been filed, you should:

• File another Form 709;

• Enter “Supplemental Information” across the top of page 1 of 

the form;

• Include a statement of what has changed, along with the 

supporting information; and

• Attach a copy of the original Form 709 that has already been 

filed.

For the mailing address for a supplemental Form 709, see 

Filing Estate and Gift Tax Returns. File the amended Form 709 at 

the following address.

Internal Revenue Service Center

Attn: E&G, Stop 824G

7940 Kentucky Drive

Florence, KY 41042-2915

If using a PDS, file at this address.

Internal Revenue Service Center

Attn: E&G, Stop 824G

7940 Kentucky Drive

Florence, KY 41042-2915

If you have already been notified that the return has been 

selected for examination, you should provide the additional 

information directly to the office conducting the examination.

See the Caution under Lines 12–18. Split Gifts, later, 

before you mail the return.

Adequate Disclosure

To begin the running of the statute of limitations for a gift, 

the gift must be adequately disclosed on Form 709 (or 

an attached statement) filed for the year of the gift.

In general, a gift will be considered adequately disclosed if 

the return or statement includes the following.

• A full and complete Form 709.

• A description of the transferred property and any 

consideration received by the donor.

• The identity of, and relationship between, the donor and 

each donee.

• If the property is transferred in trust, the trust's employer 

identification number (EIN) and a brief description of the 

terms of the trust (or a copy of the trust instrument in lieu of 

the description).

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Instructions for Form 709 (2023) -5-
• Either a qualified appraisal or a detailed description of the 

method used to determine the fair market value of the gift.

See Regulations section 301.6501(c)-1(e) and (f) for details, 

including what constitutes a qualified appraisal, the information 

required if no appraisal is provided, and the information required 

for transfers under sections 2701 and 2702.

Penalties

Late filing and late payment. Section 6651 imposes penalties 

for both late filing and late payment, unless there is reasonable 

cause for the delay.

Reasonable-cause determinations. If you receive a notice 

about penalties after you file Form 709, send an explanation and 

we will determine if you meet reasonable-cause criteria. Do not 

attach an explanation when you file Form 709.

There are also penalties for willful failure to file a return on 

time, willful attempt to evade or defeat payment of tax, and 

valuation understatements that cause an underpayment of the 

tax. A substantial valuation understatement occurs when the 

reported value of property entered on Form 709 is 65% or less of 

the actual value of the property. A gross valuation 

understatement occurs when the reported value listed on the 

Form 709 is 40% or less of the actual value of the property.

Return preparer. Penalties may also be applied to tax return 

preparers, including gift tax return preparers.

Gift tax return preparers who prepare any return or claim for 

refund that reflects an understatement of tax liability due to an 

unreasonable position are subject to a penalty equal to the 

greater of $1,000 or 50% of the income earned (or to be earned) 

for the preparation of each such return.

Gift tax return preparers who prepare any return or claim for 

refund with an understatement of tax liability due to willful or 

reckless conduct can be penalized $5,000 or 75% of the income 

derived (or to be derived) for the preparation of the return.

Gift tax return preparers who prepare any return or claim for a 

refund are required to furnish a copy to the taxpayer, sign the 

return, and provide their PTIN, but who fail to do so, are subject 

to a penalty of $50 for such failure, unless it is shown that such 

failure is due to reasonable cause and not due to willful neglect.

See section 6694, the related regulations, and Ann. 2009-15, 

2009-11 I.R.B. 687, available at IRS.gov/pub/irs-irbs/

irb09-11.pdf, for more information.

Joint Tenancy

If you buy property with your own funds and the title to the 

property is held by you and a donee as joint tenants with right of 

survivorship and if either you or the donee may give up those 

rights by severing your interest, you have made a gift to the 

donee in the amount of half the value of the property.

If you create a joint bank account for yourself and a donee (or 

a similar kind of ownership by which you can get back the entire 

fund without the donee's consent), you have made a gift to the 

donee when the donee draws on the account for the donee’s 

own benefit. The amount of the gift is the amount that the donee 

took out without any obligation to repay you.

If you buy a U.S. savings bond registered as payable to 

yourself or a donee, there is a gift to the donee when the donee 

cashes the bond without any obligation to account to you.

Transfer of Certain Life Estates 

Received From Spouse

If you received a qualified terminable interest (see Line 12. 

Election Out of QTIP Treatment of Annuities in the instructions for 

Schedule A, later) from your spouse for which a marital 

deduction was elected on your spouse's estate or gift tax return, 

you will be subject to the gift tax (and GST tax, if applicable) if 

you dispose of all or part of your life income interest (by gift, sale, 

or otherwise).

Generally, the entire value of the property transferred will be 

treated as a taxable gift less:

1. The amount you received (if any) for the life income interest; 

and

2. The amount (if any) determined after the application of 

section 2702, valuing certain retained interests at zero, for 

the life income interest you retained after the transfer.

That portion of the property's value that is attributable to the 

remainder interest is a gift of a future interest for which no annual 

exclusion is allowed. To the extent that you transferred the life 

income interest without receiving any value in return, the transfer 

is a gift, and you may claim an annual exclusion, treating the 

person to whom you transferred the interest as the donee for 

purposes of figuring the annual exclusion.

Specific Instructions

Part 1—General Information

Line 3. Donor’s Social Security Number

Enter your social security number (SSN), if applicable, or your 

individual taxpayer identification number (ITIN), but only if you 

have previously used the ITIN to file other U.S. tax returns. If you 

do not have an SSN or a previously used ITIN, the IRS will 

assign an Internal Revenue Service Number (IRSN) to you. If 

you have already been assigned an IRSN, please enter the 

number on line 3. If you do not have a SSN, ITIN, or IRSN, leave 

line 3 blank.

Lines 4 and 6. Address

Enter your current mailing address.

Foreign address. If your address is outside of the United 

States or its territories, enter the information as follows: city, 

province or state, and name of country. Follow the country's 

practice for entering the postal code. Do not abbreviate the 

country name.

Line 5. Legal Residence (Domicile)

In general, your legal residence (also known as your domicile) is 

acquired by living in a place, for even a brief period of time, with 

no definite present intention of moving from that place.

Enter the state of the United States (including the District of 

Columbia) or a foreign country in which you legally reside or are 

domiciled at the time of the gift.

Line 7. Citizenship

Enter your citizenship.

The term “citizen of the United States” includes a person who, 

at the time of making the gift:

• Was domiciled in a territory of the United States,

• Was a U.S. citizen, and

• Became a U.S. citizen for a reason other than being a citizen 

of a U.S. territory or being born or residing in a territory.

A nonresident not a citizen of the United States includes a 

person who, at the time of making the gift:

• Was domiciled in a territory of the United States,

• Was a U.S. citizen, and

• Became a U.S. citizen only because that person was a 

citizen of a territory or was born or resided in a territory.

-6- Instructions for Form 709 (2023)
Lines 12–18. Split Gifts

A married couple may not file a joint gift tax return. 

However, if after reading the instructions below, you and 

your spouse agree to split your gifts, you should file both 

of your individual gift tax returns together (that is, in the same 

envelope) to help the IRS process the returns and to avoid 

correspondence from the IRS.

If you and your spouse both consent, all gifts (including gifts 

of property held with your spouse as joint tenants or tenants by 

the entirety) either of you make to third parties during the 

calendar year will be considered as made one-half by each of 

you if all of the following apply.

• You and your spouse were married to one another at the 

time of the gift.

• If divorced or widowed after the gift, you did not remarry 

during the rest of the calendar year.

• Neither of you was a nonresident not a citizen of the United 

States at the time of the gift.

• You did not give your spouse a general power of 

appointment over the property interest transferred.

If you transferred property partly to your spouse and partly to 

third parties, you can only split the gifts if the interest transferred 

to the third parties is ascertainable at the time of the gift.

The consent is effective for the entire calendar year; 

therefore, all gifts made by both you and your spouse to third 

parties during the calendar year (while you were married) must 

be split.

If the consent is effective, the liability for the entire gift tax of 

each spouse is joint and several.

If you meet these requirements and want your gifts to be 

considered made one-half by you and one-half by your spouse, 

check the “Yes” box on line 12, complete lines 13 through 17, 

and have your spouse sign the consent on line 18.

If you are not married or do not wish to split gifts, skip to 

line 19.

Line 15. If you were married to one another for all of 2023, 

check the “Yes” box and skip to line 17. If you were married for 

only part of the year, check the “No” box and go to line 16. If you 

were divorced or widowed after you made the gift, you cannot 

elect to split gifts if you remarried before the end of 2023.

Line 16. Check the box that explains the change in your marital 

status during the year and give the date you were married, 

divorced, or widowed.

Consent of Spouse

Your spouse must sign the consent for your gift-splitting election 

to be valid. The consent may generally be signed at any time 

after the end of the calendar year. However, there are two 

exceptions.

1. The consent may not be signed after April 15 following the 

end of the year in which the gift was made. But if neither you 

nor your spouse has filed a gift tax return for the year on or 

before that date, the consent must be made on the first gift 

tax return for the year filed by either of you.

2. The consent may not be signed after a notice of deficiency 

for the gift tax for the year has been sent to either you or 

your spouse.

The executor for a deceased spouse or the guardian for a 

legally incompetent spouse may sign the consent.

CAUTION

!

When the Consenting Spouse Must Also File a Gift 

Tax Return

In general, if you and your spouse elect gift splitting, then both 

spouses must file their own individual gift tax return.

However, only one spouse must file a return if the 

requirements of either of the exceptions below are met. In these 

exceptions, gifts means transfers (or parts of transfers) that do 

not qualify for the political organization, educational, or medical 

exclusions.

Exception 1. During the calendar year:

• Only one spouse made any gifts,

• The total value of these gifts to each third-party donee does 

not exceed $34,000, and

• All of the gifts were of present interests.

Exception 2. During the calendar year:

• Only one spouse (the donor spouse) made gifts of more 

than $17,000 but not more than $34,000 to any third-party 

donee,

• The only gifts made by the other spouse (the consenting 

spouse) were gifts of not more than $17,000 to third-party 

donees other than those to whom the donor spouse made 

gifts, and

• All of the gifts by both spouses were of present interests.

If either of the above exceptions is met, only the donor 

spouse must file a return and the consenting spouse signifies 

consent on that return.

Specific instructions for Part 2—Tax Computation are 

discussed later. Because you must complete Schedules A, B, C, 

and D to fill out Part 2, you will find instructions for these 

schedules later.

Line 19. Application of DSUE Amount

If the donor is a citizen or resident of the United States and the 

spouse died after December 31, 2010, the donor may be eligible 

to use the deceased spouse's unused exclusion (DSUE) 

amount. The executor of the spouse's estate must have elected 

on Form 706 to allow use of the unused exclusion amount. See 

the instructions for Form 706, Part 6—Portability of Deceased 

Spousal Unused Exclusion. If the executor of the estate made 

this election, attach the first four pages of Form 706 filed by the 

estate. Include any attachments related to DSUE that were filed 

with Form 706 and calculations of any adjustments to the DSUE 

amount like audit reports or previously filed Forms 709. Please 

see Rev. Proc. 2022-32, which provides an update to the 

simplified method for making a late DSUE election for certain 

qualifying taxpayers (superseding Rev. Proc. 2017-34). See also 

section 2010(c)(4) and related regulations.

Using the checkboxes provided, indicate whether the donor is 

applying or has applied a DSUE amount from a predeceased 

spouse to gifts reported on this or a previous Form 709. If so, 

complete Schedule C before going to Part 2—Tax Computation, 

later.

Line 20. Digital Assets

If you reported on this Form 709 any transfer that includes a 

digital asset (or a financial interest in a digital asset), answer 

“Yes” to the question on Line 20. Do not leave the question 

unanswered. You must answer “Yes” or “No” by checking the 

appropriate box.

Instructions for Form 709 (2023) -7-
Schedule A. Computation of Taxable 

Gifts

Do not enter on Schedule A any gift or part of a gift that qualifies 

for the political organization, educational, or medical exclusions. 

In the instructions below, gifts means transfers (or parts of 

transfers) that do not qualify for the political organization, 

educational, or medical exclusions.

Line A. Valuation Discounts

If the value of any gift you report in either Part 1, Part 2, or Part 3 

of Schedule A includes a discount for lack of marketability, a 

minority interest, a fractional interest in real estate, blockage, 

market absorption, or for any other reason, answer “Yes” to the 

question at the top of Schedule A. Also attach an explanation 

giving the basis for the claimed discounts and showing the 

amount of the discounts taken.

Line B. Qualified Tuition Programs (529 Plans or 

Programs)

If in 2023, you contributed more than $17,000 to a qualified 

tuition plan (QTP) on behalf of any one person, you may elect to 

treat up to $85,000 of the contribution for that person as if you 

had made it ratably over a 5-year period. The election allows you 

to apply the annual exclusion to a portion of the contribution in 

each of the 5 years, beginning in 2023. You can make this 

election for as many separate people as you made QTP 

contributions.

You can only apply the election to a maximum of $85,000. 

You must report all of your 2023 QTP contributions for any single 

person that exceed $85,000 (in addition to any other gifts you 

made to that person).

For each of the 5 years, you report in Part 1 of Schedule A 

one-fifth (20%) of the amount for which you made the election. In 

column E of Part 1 (Schedule A), list the date of the gift as the 

calendar year for which you are deemed to have made the gift 

(that is, the year of the current Form 709 you are filing). Do not 

list the actual year of contribution for subsequent years.

However, if in any of the last 4 years of the election, you did 

not make any other gifts that would require you to file a Form 

709, you do not need to file Form 709 to report that year's portion 

of the election amount.

Example. In 2023, D contributed $100,000 to a QTP for the 

benefit of A. D elects to treat $85,000 of this contribution as 

having been made ratably over a 5-year period. Accordingly, for 

2023, D reports the following.

$15,000 (the amount of the contribution that exceeded 

$85,000)

+ $17,000 (the 1/5 portion from the election)

$32,000 the total gift to A listed in Part 1 of Schedule A for 

2023

In 2024, D gives a gift of $20,000 cash to B and no other gifts. 

On 2024 Form 709, D reports in Part 1 of Schedule A the 

$20,000 gift to B and a $17,000 gift to A (the one-fifth portion of 

the 2023 gift that is treated as made in 2024). In column E of Part 

1 (Schedule A), D lists “2024” as the date of the gift.

D makes no gifts in 2025, 2026, or 2027. D is not required to 

file Form 709 in any of those years to report the one-fifth portion 

of the QTP gift because D is not otherwise required to file Form 

709.

You make the election by checking the box on line B at the top 

of Schedule A. The election must be made for the calendar year 

in which the contribution is made. Also attach an explanation that 

includes the following.

• The total amount contributed per individual beneficiary.

• The amount for which the election is being made.

• The name of the individual for whom the contribution was 

made.

If you are electing gift splitting, apply the gift-splitting rules 

before applying the QTP rules. Each spouse would then decide 

individually whether to make this QTP election.

Contributions to QTPs do not qualify for the education 

exclusion.

How To Complete Parts 1, 2, and 3

After you determine which gifts you made in 2023 that are 

subject to the gift tax, list them on Schedule A. You must divide 

these gifts between:

1. Part 1—those subject only to the gift tax (gifts made to 

nonskip persons—see Part 1—Gifts Subject Only to Gift 

Tax, later),

2. Part 2—those subject to both the gift and GST taxes (gifts 

made to skip persons—see Gifts Subject to Both Gift and 

GST Taxes and Part 2—Direct Skips, later), and

3. Part 3—those subject only to the gift tax at this time but 

which could later be subject to GST tax (gifts that are 

indirect skips—see Part 3—Indirect Skips and Other 

Transfers in Trust, later).

If you need more space, attach a separate sheet using the 

same format as Schedule A.

Use the following guidelines when entering gifts on 

Schedule A.

• Enter a gift only once—in Part 1, Part 2, or Part 3.

• Do not enter any gift or part of a gift that qualified for the 

political organization, educational, or medical exclusion.

• Enter gifts under “Gifts made by spouse” only if you have 

chosen to split gifts with your spouse and your spouse is 

required to file a Form 709 (see Part 1—General 

Information, Lines 12–18. Split Gifts, earlier).

• In column F, enter the full value of the gift (including those 

made by your spouse, if applicable). If you have chosen to 

split gifts, that one-half portion of the gift is entered in 

column G.

Gifts to Donees Other Than Your Spouse

You must always enter all gifts of future interests that you made 

during the calendar year regardless of their value.

Gift splitting not elected. If the total gifts of present interests 

to any donee are more than $17,000 in the calendar year, then 

you must enter all such gifts that you made during the year to or 

on behalf of that donee, including those gifts that will be 

excluded under the annual exclusion. If the total is $17,000 or 

less, you need not enter on Schedule A any gifts (except gifts of 

future interests) that you made to that donee. Enter these gifts in 

the top half of Part 1, 2, or 3, as applicable.

Gift splitting elected. Enter on Schedule A the entire value of 

every gift you made during the calendar year while you were 

married, even if the gift's value will be less than $17,000 after it is 

split in column G of Part 1, 2, or 3 of Schedule A.

Gifts made by spouse. If you elected gift splitting and your 

spouse made gifts, list those gifts in the space below “Gifts made 

by spouse” in Part 1, 2, or 3. Report these gifts in the same way 

you report gifts you made.

CAUTION

!

TIP

-8- Instructions for Form 709 (2023)
Gifts to Your Spouse

Except for the gifts described below, you do not need to enter 

any of your gifts to your spouse on Schedule A.

Terminable interests. Terminable interests are defined in the 

instructions for Part 4, line 4. If all the terminable interests you 

gave to your spouse qualify as life estates with power of 

appointment (defined under Life estate with power of 

appointment, later), you do not need to enter any of them on 

Schedule A.

However, if you gave your spouse any terminable interest that 

does not qualify as a life estate with power of appointment, you 

must report on Schedule A all gifts of terminable interests you 

made to your spouse during the year.

Charitable remainder trusts. If you make a gift to a charitable 

remainder trust and your spouse is the only noncharitable 

beneficiary (other than yourself), the interest you gave to your 

spouse is not considered a terminable interest and, therefore, 

should not be shown on Schedule A. See section 2523(g)(1). 

For definitions and rules concerning these trusts, see section 

2056(b)(8)(B).

Future interest. Generally, you should not report a gift of a 

future interest to your spouse unless the future interest is also a 

terminable interest that is required to be reported as described 

earlier. However, if you gave a gift of a future interest to your 

spouse and you are required to report the gift on Form 709 

because you gave the present interest to a donee other than 

your spouse, then you should enter the entire gift, including the 

future interest given to your spouse, on Schedule A. You should 

use the rules under Gifts Subject to Both Gift and GST Taxes, 

later, to determine whether to enter the gift on Schedule A, Part 

1, 2, or 3.

Spouses who are not U.S. citizens. If your spouse is not a 

U.S. citizen and you gave your spouse a gift of a future interest, 

you must report on Schedule A all gifts to your spouse for the 

year. If all gifts to your spouse were present interests, do not 

report on Schedule A any gifts to your spouse if the total of such 

gifts for the year does not exceed $175,000 and all gifts in 

excess of $17,000 would qualify for a marital deduction if your 

spouse were a U.S. citizen (see the instructions for Schedule A, 

Part 4, line 4). If the gifts exceed $175,000, you must report all of 

the gifts even though some may be excluded.

Gifts Subject to Both Gift and GST 

Taxes

Definitions

Direct skip. The GST tax you must report on Form 709 is that 

imposed only on inter vivos direct skips. An inter vivos direct skip 

is a transfer that is:

• Subject to the gift tax,

• Of an interest in property, and

• Made to a skip person.

All three requirements must be met before the gift is subject to 

the GST tax.

A gift is “subject to the gift tax” if you are required to list it on 

Schedule A of Form 709. However, if you make a nontaxable gift 

(which is a direct skip) to a trust for the benefit of an individual, 

this transfer is subject to the GST tax unless:

1. During the lifetime of the beneficiary, no corpus or income 

may be distributed to anyone other than the beneficiary; and

2. If the beneficiary dies before the termination of the trust, the 

assets of the trust will be included in the gross estate of the 

beneficiary.

Note. If the property transferred in the direct skip would have 

been includible in the donor's estate if the donor died 

immediately after the transfer, see Transfers Subject to an Estate 

Tax Inclusion Period (ETIP), earlier.

To determine if a gift “is of an interest in property” and “is 

made to a skip person,” you must first determine if the donee is a 

“natural person” or a “trust,” as defined below.

Trust. For purposes of the GST tax, a trust includes not only an 

ordinary trust, but also any other arrangement (other than an 

estate) that although not explicitly a trust, has substantially the 

same effect as a trust. For example, a trust includes life estates 

with remainders, terms for years, and insurance and annuity 

contracts. A transfer of property that is conditional on the 

occurrence of an event is a transfer in trust.

Interest in property. If a gift is made to a natural person, it is 

always considered a gift of an interest in property for purposes of 

the GST tax.

If a gift is made to a trust, a natural person will have an 

interest in the property transferred to the trust if that person 

either has a present right to receive income or corpus from the 

trust (such as an income interest for life) or is a permissible 

current recipient of income or corpus from the trust (for example, 

possesses a general power of appointment).

Skip person. A donee, who is a natural person, is a skip person 

if that donee is assigned to a generation that is two or more 

generations below the generation assignment of the donor. See 

Determining the Generation of a Donee, later.

A donee that is a trust is a skip person if all the interests in the 

property transferred to the trust (as defined above) are held by 

skip persons.

A trust will also be a skip person if there are no interests in the 

property transferred to the trust held by any person, and future 

distributions or terminations from the trust can be made only to 

skip persons.

Nonskip person. A nonskip person is any donee who is not a 

skip person.

Determining the Generation of a Donee

Generally, a generation is determined along family lines as 

follows.

1. If the donee is a lineal descendant of a grandparent of the 

donor (for example, the donor's cousin, niece, nephew, 

etc.), the number of generations between the donor and the 

descendant (donee) is determined by subtracting the 

number of generations between the grandparent and the 

donor from the number of generations between the 

grandparent and the descendant (donee).

2. If the donee is a lineal descendant of a grandparent of a 

spouse (or former spouse) of the donor, the number of 

generations between the donor and the descendant 

(donee) is determined by subtracting the number of 

generations between the grandparent and the spouse (or 

former spouse) from the number of generations between 

the grandparent and the descendant (donee).

3. A person who at any time was married to a person 

described in (1) or (2) above is assigned to the generation 

of that person. A person who at any time was married to the 

donor is assigned to the donor's generation.

4. A relationship by adoption or half-blood is treated as a 

relationship by whole-blood.

A person who is not assigned to a generation according to 

(1), (2), (3), or (4) above is assigned to a generation based on 

the person’s birth date as follows.

Instructions for Form 709 (2023) -9-
1. A person who was born not more than 121/2 years after the 

donor is in the donor's generation.

2. A person born more than 121/2 years, but not more than 

371/2 years, after the donor is in the first generation younger 

than the donor.

3. Similar rules apply for a new generation every 25 years.

If more than one of the rules for assigning generations apply 

to a donee, that donee is generally assigned to the youngest of 

the generations that would apply.

If an estate, trust, partnership, corporation, or other entity 

(other than governmental entities and certain charitable 

organizations and trusts, described in sections 511(a)(2) and 

511(b)(2), as discussed later) is a donee, then each person who 

indirectly receives the gift through the entity is treated as a 

donee and is assigned to a generation as explained in the above 

rules.

Charitable organizations and trusts, described in sections 

511(a)(2) and 511(b)(2), and governmental entities are assigned 

to the donor's generation. Transfers to such organizations are 

therefore not subject to the GST tax. These gifts should always 

be listed in Part 1 of Schedule A.

Generation assignments under Notice 2017-15. Notice 

2017-15 permits a taxpayer to reduce the GST exemption 

allocated to transfers that were made to or for the benefit of 

transferees whose generation assignment is changed as a result 

of the Windsor decision. A taxpayer’s GST exemption that was 

allocated to a transfer to a transferee (or a trust for the sole 

benefit of such transferee) whose generation assignment should 

have been determined on the basis of a familial relationship as 

the result of the Windsor decision, and are nonskip persons, is 

deemed void. For additional information, go to IRS.gov/

Businesses/Small-Businesses-Self-Employed/Estate-and-GiftTaxes.

Charitable Remainder Trusts

Gifts in the form of charitable remainder annuity trusts, charitable 

remainder unitrusts, and pooled income funds are not transfers 

to skip persons and therefore are not direct skips. You should 

always list these gifts in Part 1 of Schedule A even if all of the life 

beneficiaries are skip persons.

Generation Assignment Where Intervening 

Parent Is Deceased

If you made a gift to your grandchild and at the time you made 

the gift, the grandchild's parent (who is your or your spouse's or 

your former spouse's child) is deceased, then for purposes of 

generation assignment, your grandchild is considered to be your 

child rather than your grandchild. Your grandchild's children will 

be treated as your grandchildren rather than your 

great-grandchildren.

This rule is also applied to your lineal descendants below the 

level of grandchild. For example, if your grandchild is deceased, 

your great-grandchildren who are lineal descendants of the 

deceased grandchild are considered your grandchildren for 

purposes of the GST tax.

This special rule may also apply in other cases of the death of 

a parent of the transferee. If property is transferred to a 

descendant of a parent of the transferor and that person's parent 

(who is a lineal descendant of the parent of the transferor) is 

deceased at the time the transfer is subject to gift or estate tax, 

then for purposes of generation assignment, the individual is 

treated as a member of the generation that is one generation 

below the lower of:

• The transferor's generation, or

• The generation assignment of the youngest living ancestor 

of the individual who is also a descendant of the parent of 

the transferor.

The same rules apply to the generation assignment of any 

descendant of the individual.

This rule does not apply to a transfer to an individual who is 

not a lineal descendant of the transferor if the transferor at the 

time of the transfer has any living lineal descendants.

If any transfer of property to a trust would have been a direct 

skip except for this generation assignment rule, then the rule also 

applies to transfers from the trust attributable to such property.

Ninety-day rule. For assigning individuals to generations for 

purposes of the GST tax, any individual who dies no later than 

90 days after a transfer occurring by reason of the death of the 

transferor is treated as having predeceased the transferor. The 

90-day rule applies to transfers occurring on or after July 18, 

2005. See Regulations section 26.2651-1(a)(2)(iii) for more 

information.

Examples

The GST rules can be illustrated by the following examples.

Example 1. You give your house to your daughter with the 

remainder then passing to your daughter’s children. This gift is 

made to a “trust” even though there is no explicit trust instrument. 

The interest in the property transferred (the present right to use 

the house) is transferred to a nonskip person (your daughter). 

Therefore, the trust is not a skip person because there is an 

interest in the transferred property that is held by a nonskip 

person, and the gift is not a direct skip. The transfer is an indirect 

skip, however, because on the death of the daughter, a 

termination of your daughter’s interest in the trust will occur that 

may be subject to the GST tax. See the instructions for Part 

3—Indirect Skips and Other Transfers in Trust, later, for a 

discussion of how to allocate GST exemption to such a trust.

Example 2. You give $100,000 to your grandchild. This gift is 

a direct skip that is not made in trust. You should list it in Part 2 of 

Schedule A.

Example 3. You establish a trust that is required to 

accumulate income for 10 years and then pay its income to your 

grandchildren for their lives and upon their deaths distribute the 

corpus to their children. Because the trust has no current 

beneficiaries, there are no present interests in the property 

transferred to the trust. All of the persons to whom the trust can 

make future distributions (including distributions upon the 

termination of interests in property held in trust) are skip persons 

(that is, your grandchildren and great-grandchildren). Therefore, 

the trust itself is a skip person and you should list the gift in Part 

2 of Schedule A.

Example 4. You establish a trust that pays all of its income to 

your grandchildren for 10 years. At the end of 10 years, the 

corpus is to be distributed to your children. Because for this 

purpose interests in trusts are defined only as present interests, 

all of the interests in this trust are held by skip persons (the 

children's interests are future interests). Therefore, the trust is a 

skip person and you should list the entire amount you transferred 

to the trust in Part 2 of Schedule A even though some of the 

trust's ultimate beneficiaries are nonskip persons.

Part 1—Gifts Subject Only to Gift Tax

List in Part 1 gifts subject only to the gift tax. Generally, all of the 

gifts you made to your spouse (that are required to be listed, as 

described earlier), to your children, and to charitable 

organizations are not subject to the GST tax and should 

therefore be listed only in Part 1.

-10- Instructions for Form 709 (2023)
Group the gifts in four categories.

• Gifts made to your spouse.

• Gifts made to third parties that are to be split with your 

spouse.

• Charitable gifts (if you are not splitting gifts with your 

spouse).

• Other gifts.

If a transfer results in gifts to two or more individuals (such as a 

life estate to one with remainder to the other), list the gift to each 

separately.

Number and describe all gifts (including charitable, public, 

and similar gifts) in the columns provided in Schedule A.

Column B

Describe each gift in enough detail so that the property can be 

easily identified, as explained below.

For real estate, give:

• A legal description of each parcel;

• The street number, name, and area if the property is located 

in a city; and

• A short statement of any improvements made to the 

property.

For bonds, give:

• The number of bonds transferred;

• The principal amount of each bond;

• Name of obligor;

• Date of maturity;

• Rate of interest;

• Date or dates when interest is payable;

• Series number, if there is more than one issue;

• Exchanges where listed or, if unlisted, give the location of 

the principal business office of the corporation; and

• CUSIP number. The CUSIP number is a nine-digit number 

assigned by the American Banking Association to traded 

securities.

For stocks:

• Give number of shares;

• State whether common or preferred;

• If preferred, give the issue, par value, quotation at which 

returned, and exact name of corporation;

• If unlisted on a principal exchange, give the location of the 

principal business office of the corporation, the state in 

which incorporated, and the date of incorporation;

• If listed, give principal exchange; and

• CUSIP number.

For interests in property based on the length of a person's life, 

give the date of birth of the person. If you transfer any interest in 

a closely held entity, provide the EIN of the entity.

For life insurance policies, give the name of the insurer and 

the policy number.

Clearly identify in the description column which gifts create 

the opening of an ETIP as described under Transfers Subject to 

an Estate Tax Inclusion Period (ETIP), earlier. Describe the 

interest that is creating the ETIP. An allocation of GST exemption 

to property subject to an ETIP that is made prior to the close of 

the ETIP becomes effective no earlier than the date of the close 

of the ETIP. See Schedule D. Computation of GST Tax, later.

Column D. Donor's Adjusted Basis of Gifts

Show the basis you would use for income tax purposes if the gift 

were sold or exchanged. Generally, this means cost plus 

improvements, less applicable depreciation, amortization, and 

depletion.

For more information on adjusted basis, see Pub. 551, Basis 

of Assets.

Columns E and F. Date and Value of Gift

The value of a gift is the fair market value (FMV) of the property 

on the date the gift is made (valuation date). The FMV is the 

price at which the property would change hands between a 

willing buyer and a willing seller, when neither is forced to buy or 

to sell, and when both have reasonable knowledge of all relevant 

facts. FMV may not be determined by a forced sale price, nor by 

the sale price of the item in a market other than that in which the 

item is most commonly sold to the public. The location of the 

item must be taken into account whenever appropriate.

The FMV of a stock or bond (whether listed or unlisted) is the 

mean between the highest and lowest selling prices quoted on 

the valuation date. If only the closing selling prices are available, 

then the FMV is the mean between the quoted closing selling 

price on the valuation date and on the trading day before the 

valuation date. If there were no sales on the valuation date, figure 

the FMV as follows.

1. Find the mean between the highest and lowest selling 

prices on the nearest trading date before and the nearest 

trading date after the valuation date. Both trading dates 

must be reasonably close to the valuation date.

2. Prorate the difference between mean prices to the valuation 

date.

3. Add or subtract (whichever applies) the prorated part of the 

difference to or from the mean price figured for the nearest 

trading date before the actual valuation date.

If no actual sales were made reasonably close to the 

valuation date, make the same computation using the mean 

between the bona fide bid and the asked prices instead of sales 

prices. If actual sales prices or bona fide bid and asked prices 

are available within a reasonable period of time before the 

valuation date but not after the valuation date, or vice versa, use 

the mean between the highest and lowest sales prices or bid and 

asked prices as the FMV.

Stock of close corporations or inactive stock must be valued 

on the basis of net worth, earnings, earning and dividend 

capacity, and other relevant factors.

Generally, the best indication of the value of real property is 

the price paid for the property in an arm's-length transaction on 

or before the valuation date. If there has been no such 

transaction, use the comparable sales method. In comparing 

similar properties, consider differences in the date of the sale, 

and the size, condition, and location of the properties, and make 

all appropriate adjustments.

The value of all annuities, life estates, terms for years, 

remainders, or reversions is generally the present value on the 

date of the gift.

Sections 2701 and 2702 provide special valuation rules to 

determine the amount of the gift when a donor transfers an 

equity interest in a corporation or partnership (section 2701) or 

makes a gift in trust (section 2702). The rules only apply if, 

immediately after the transfer, the donor (or an applicable family 

member) holds an applicable retained interest in the corporation 

or partnership, or retains an interest in the trust. For details, see 

sections 2701 and 2702, and their regulations.

Instructions for Form 709 (2023) -11-
Column G. Split Gifts

Enter an amount in this column only if you have chosen to split 

gifts with your spouse.

Split Gifts—Gifts Made by Spouses

If you elected to split gifts with your spouse and your spouse has 

given a gift(s) that is being split with you, enter in this area of Part 

1 information on the gift(s) made by your spouse. If only you 

made gifts and you are splitting them with your spouse, do not 

make an entry in this area.

Generally, if you elect to split your gifts, you must split all gifts 

made by you and your spouse to third-party donees. The only 

exception is if you gave your spouse a general power of 

appointment over a gift you made.

Supplemental Documents

To support the value of your gifts, you must provide information 

showing how it was determined.

For stock of close corporations or inactive stock, attach 

balance sheets, particularly the one nearest the date of the gift, 

and statements of net earnings or operating results and 

dividends paid for each of the 5 preceding years.

For each life insurance policy, attach Form 712, Life 

Insurance Statement.

Note for single premium or paid-up policies. In certain 

situations, for example, where the surrender value of the policy 

exceeds its replacement cost, the true economic value of the 

policy will be greater than the amount shown on line 59 of Form 

712. In these situations, report the full economic value of the 

policy on Schedule A. See Rev. Rul. 78-137, 1978-1 C.B. 280, 

for details.

If the gift was made by means of a trust, attach a certified or 

verified copy of the trust instrument to the return on which you 

report your first transfer to the trust. However, to report 

subsequent transfers to the trust, you may attach a brief 

description of the terms of the trust or a copy of the trust 

instrument.

Also attach any appraisal used to determine the value of real 

estate or other property.

If you do not attach this information, Schedule A must include 

a full explanation of how value was determined.

Part 2—Direct Skips

List in Part 2 only those gifts that are currently subject to both the 

gift and GST taxes. You must list the gifts in Part 2 in the 

chronological order that you made them. Number, describe, and 

value the gifts as described in the instructions for Part 1.

If you made a transfer to a trust that was a direct skip, list the 

entire gift as one line entry in Part 2.

Column C. Section 2632(b) Election

If you elect under section 2632(b)(3) to not have the automatic 

allocation rules of section 2632(b) apply to a transfer, enter a 

check in column C next to the transfer. You must also attach a 

statement to Form 709 clearly describing the transaction and the 

extent to which the automatic allocation is not to apply. Reporting 

a direct skip on a timely filed Form 709 and paying the GST tax 

on the transfer will qualify as such a statement.

How to report GSTs after the close of an ETIP. If you are 

reporting a GST that was subject to an ETIP (provided the ETIP 

closed as a result of something other than the death of the 

transferor; see Form 706), do not include the transfer subject to 

an ETIP on Schedule A. Rather, report the transfer subject to an 

ETIP on Schedule D. See Schedule D, Part 

1—Generation-Skipping Transfers, later. Report all other gifts 

made during the year on Schedule A as you normally would.

Split Gifts—Gifts Made by Spouse

See this heading under Part 1.

Part 3—Indirect Skips and Other Transfers in 

Trust

Some gifts made to trusts are subject only to gift tax at the time 

of the transfer but may later be subject to GST tax. The GST tax 

could apply either at the time of a distribution from the trust, at 

the termination of the trust, or both.

Section 2632(c) defines indirect skips and applies special 

rules to the allocation of GST exemption to such transfers. In 

general, an indirect skip is a transfer of property that is subject to 

gift tax (other than a direct skip) and is made to a GST trust. A 

GST trust is a trust that could have a GST with respect to the 

transferor, unless the trust provides for certain distributions of 

trust corpus to nonskip persons. See section 2632(c)(3)(B) for 

details.

List in Part 3 those gifts that are indirect skips as defined in 

section 2632(c) or may later be subject to GST tax. This includes 

indirect skips for which election 2, described below, will be made 

in the current year or has been made in a previous year. You 

must list the gifts in Part 3 in the chronological order that you 

made them.

Column C. Section 2632(c) Election

Section 2632(c) provides for the automatic allocation of the 

donor's unused GST exemption to indirect skips. This section 

also sets forth three different elections you may make regarding 

the allocation of exemption.

Election 1. You may elect not to have the automatic 

allocation rules apply to the current transfer made to a 

particular trust.

Election 2. You may elect not to have the automatic rules 

apply to both the current transfer and any and all future 

transfers made to a particular trust.

Election 3. You may elect to treat any trust as a GST trust for 

purposes of the automatic allocation rules.

See section 2632(c)(5) for details.

When to make an election. Election 1 is timely made if it is 

made on a timely filed gift tax return for the year the transfer was 

made or was deemed to have been made.

Elections 2 and 3 may be made on a timely filed gift tax return 

for the year for which the election is to become effective.

To make one of these elections, check column C next to the 

transfer to which the election applies. You must also attach an 

explanation as described below. If you are making election 2 or 3 

on a return on which the transfer is not reported, simply attach 

the statement described below.

If you are reporting a transfer to a trust for which election 2 or 

3 was made on a previously filed return, do not make an entry in 

column C for that transfer and do not attach a statement.

Attachment. Attach a statement to Form 709 that describes the 

election you are making and clearly identifies the trusts and/or 

transfers to which the election applies.

Split Gifts—Gifts Made by Spouse

See this heading under Part 1.

-12- Instructions for Form 709 (2023)
Part 4—Taxable Gift Reconciliation

Line 1

Enter only gifts of the donor. If gift splitting has been elected, 

enter only the value of the gift that is attributable to the spouse 

that is filing the return.

Line 2

Enter the total annual exclusions you are claiming for the gifts 

listed on Schedule A. See Annual Exclusion, earlier. If you split a 

gift with your spouse, the annual exclusion you claim against that 

gift may not be more than the smaller of your half of the gift or 

$17,000.

Deductions

Line 4. Marital Deduction

Enter all of the gifts to your spouse that you listed on Schedule A 

and for which you are claiming a marital deduction. Do not enter 

any gift that you did not include on Schedule A. On the dotted 

line on line 4, indicate which numbered items from Schedule A 

are gifts to your spouse for which you are claiming the marital 

deduction.

Do not enter on line 4 any gifts to your spouse who was 

not a U.S. citizen at the time of the gift.

You may deduct all gifts of nonterminable interests made 

during the year that you entered on Schedule A regardless of 

amount, and certain gifts of terminable interests as outlined 

below.

Terminable interests. Generally, you cannot take the marital 

deduction if the gift to your spouse is a terminable interest. In 

most instances, a terminable interest is nondeductible if 

someone other than the donee spouse will have an interest in 

the property following the termination of the donee spouse's 

interest. Some examples of terminable interests are:

• A life estate,

• An estate for a specified number of years, or

• Any other property interest that after a period of time will 

terminate or fail.

If you transfer an interest to your spouse as sole joint tenant 

with yourself or as a tenant by the entirety, the interest is not 

considered a terminable interest just because the tenancy may 

be severed.

Life estate with power of appointment. You may deduct, 

without an election, a gift of a terminable interest if all four 

requirements below are met.

1. Your spouse is entitled for life to all of the income from the 

entire interest.

2. The income is paid yearly or more often.

3. Your spouse has the unlimited power, while alive or by will, 

to appoint the entire interest in all circumstances.

4. No part of the entire interest is subject to another person's 

power of appointment (except to appoint it to your spouse).

If either the right to income or the power of appointment given 

to your spouse pertains only to a specific portion of a property 

interest, the marital deduction is allowed only to the extent that 

the rights of your spouse meet all four of the above conditions. 

For example, if your spouse is to receive all of the income from 

the entire interest, but only has a power to appoint one-half of the 

entire interest, then only one-half qualifies for the marital 

deduction.

TIP

A partial interest in property is treated as a specific portion of 

an entire interest only if the rights of your spouse to the income 

and to the power are a fractional or percentile share of the entire 

property interest. This means that the interest or share will reflect 

any increase or decrease in the value of the entire property 

interest. If the spouse is entitled to receive a specified sum of 

income annually, the capital amount that would produce such a 

sum will be considered the specific portion from which the 

spouse is entitled to receive the income.

Election to deduct qualified terminable interest property 

(QTIP). You may elect to deduct a gift of a terminable interest if 

it meets requirements (1), (2), and (4) earlier, even though it 

does not meet requirement (3).

You make this election simply by listing the QTIP on 

Schedule A and deducting its value from Schedule A, Part 4, 

line 4. You are presumed to have made the election for all 

qualified property that you both list and deduct on Schedule A. 

You may not make the election on a late-filed Form 709.

Line 5

Enter the amount of the annual exclusions that were claimed for 

the gifts listed on line 4.

Line 7. Charitable Deduction

You may deduct from the total gifts made during the calendar 

year all gifts you gave to or for the use of:

• The United States, a state or political subdivision of a state, 

or the District of Columbia for exclusively public purposes;

• Any corporation, trust, community chest, fund, or foundation 

organized and operated only for religious, charitable, 

scientific, literary, or educational purposes, or to prevent 

cruelty to children or animals, or to foster national or 

international amateur sports competition (if none of its 

activities involve providing athletic equipment unless it is a 

qualified amateur sports organization), as long as no part of 

the earnings benefits any one person, no substantial 

propaganda is produced, and no lobbying or campaigning 

for any candidate for public office is done;

• A fraternal society, order, or association operating under a 

lodge system, if the transferred property is to be used only 

for religious, charitable, scientific, literary, or educational 

purposes, including the encouragement of art and the 

prevention of cruelty to children or animals; or

• Any war veterans' organization organized in the United 

States (or any of its territories), or any of its auxiliary 

departments or local chapters or posts, as long as no part of 

any of the earnings benefits any one person.

On line 7, show your total charitable, public, or similar gifts 

(minus annual exclusions allowed). On the dotted line, indicate 

which numbered items from the top of Schedule A are charitable 

gifts.

Line 10. GST Tax

If GST tax is due on any direct skips reported on this return, the 

amount of that GST tax is also considered a gift and must be 

added to the value of the direct skip reported on this return.

If you entered gifts on Part 2, or if you and your spouse 

elected gift splitting and your spouse made gifts subject to the 

GST tax that you are required to show on your Form 709, 

complete Schedule D, and enter on line 10 the total from 

Schedule D, Part 3, column G. Otherwise, enter zero on line 10.

Instructions for Form 709 (2023) -13-
Line 12. Election Out of QTIP Treatment of 

Annuities

Section 2523(f)(6) creates an automatic QTIP election for gifts of 

joint and survivor annuities where the spouses are the only 

possible recipients of the annuity prior to the death of the last 

surviving spouse.

The donor spouse can elect out of QTIP treatment, however, 

by checking the box on line 12 and entering the item number 

from Schedule A for the annuities for which you are making the 

election. Any annuities entered on line 12 cannot also be entered 

on line 4 of Schedule A, Part 4. Any such annuities that are not 

listed on line 12 must be entered on line 4 of Part 4, Schedule A. 

If there is more than one such joint and survivor annuity, you are 

not required to make the election for all of them. Once made, the 

election is irrevocable.

Schedule B. Gifts From Prior Periods

If you did not file gift tax returns for previous periods, check the 

“No” box on page 1 of Form 709, line 11a, of Part 1—General 

Information. If you filed gift tax returns for previous periods, 

check the “Yes” box on line 11a and complete Schedule B by 

listing the years or quarters in chronological order as described 

below. If you need more space, attach a separate sheet using 

the same format as Schedule B.

Complete Schedule A before beginning Schedule B.

Column A

If you filed returns for gifts made before 1971 or after 1981, show 

the calendar years in column A. If you filed returns for gifts made 

after 1970 and before 1982, show the calendar quarters.

Column B

In column B, identify the IRS office where you filed the returns. If 

you have changed your name, be sure to list any other names 

CAUTION

!

under which the returns were filed. If there was any other 

variation in the names under which you filed, such as the use of 

full given names instead of initials, please explain.

Column C

To determine the amount of applicable credit (formerly unified 

credit) used for gifts made after 1976, use the Worksheet for 

Schedule B, Column C (Credit Allowable for Prior Periods), 

unless your prior gifts total $500,000 or less.

Prior gifts totaling $500,000 or less. In column C, enter the 

amount of applicable credit actually applied in the prior period.

Prior gifts totaling over $500,000. See Redetermining the 

Applicable Credit, later.

Column D

In column D, enter the amount of specific exemption claimed for 

gifts made in periods ending before January 1, 1977.

Column E

In column E, show the correct amount (the amount finally 

determined) of the taxable gifts for each earlier period.

See Regulations section 25.2504-2 for rules regarding the 

final determination of the value of a gift.

Note. Amounts shown in column E should reflect all taxable 

gifts, even if no gift tax was paid due to the applicable (formerly 

unified) credit.

Redetermining the Applicable Credit

To redetermine the applicable credit for prior gifts in excess of 

$500,000, use the Worksheet for Schedule B, Column C (Credit 

Allowable for Prior Periods).

-14- Instructions for Form 709 (2023)
Worksheet for Schedule B, Column C (Credit 

Allowable for Prior Periods)

Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)

(Keep for your records.)

A B C D E F G H I J K L M N

Period Taxable 

Gifts for 

Current 

Period

Taxable 

Gifts for 

Prior 

Periods1

Cumulative 

Taxable Gifts 

Including 

Current 

Period 

(Col. B + Col. 

C)

Tax on 

Gifts for 

Prior 

Periods 

(Col. C)2, 3

Tax on 

Cumulative 

Gifts 

Including 

Current 

Period (Col. 

D)3

Tax on 

Gifts for 

Current 

Period

(Col. F –

Col. E)

DSUE From 

Predeceased 

Spouse(s) 

and 

Restored 

Exclusion 

Amount

Basic 

Exclusion 

for the Year 

of Gift4

Applicable 

Exclusion 

Amount

(Col. H + 

Col. I)

Applicable 

Credit 

Amount 

Based on 

Column J3, 5

Applicable 

Credit 

Amount 

Used in Prior 

Periods3, 6

Available 

Credit in 

Current 

Period

(Col. K – Col. 

L)

Credit 

Allowable

(lesser of 

Col. G or 

Col. M)

Pre-1977

YYYY

YYYY

YYYY

Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :

1

 Column C: Enter amount from column D of the previous row.

2

 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.

3

 To compute tax or credit amount, see Table for Computing Gift Tax.

4

 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.

5

 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.

6

 Enter the total of columns L and N of the previous row.

Instructions for Worksheet for Schedule B, Column C (Credit Allowable for Prior Periods)

Beginning with the earliest year after 1976 in which gifts using a credit amount were made, determine the credit amount (at current rates) for each 

quarter/year as follows.

Column

A

Period

Enter the quarter/year of the prior gift(s). Pre-1977 gifts will be on the first row.

B

Taxable Gifts for Current Period

Enter the amount of all taxable gifts for the year in column A. The total of all pre-1977 gifts should 

be combined in the first row.

C

Taxable Gifts for Prior Periods

Enter the amount from column D of the previous row.

D

Cumulative Taxable Gifts Including Current Period

Enter the sum of columns B and C from the current row.

E

Tax on Gifts for Prior Periods

Enter the amount from column F of the previous row.

F

Tax on Cumulative Gifts Including Current Period

Enter the tax based on the amount in column D of the current row using the Table for Computing 

Gift Tax.

G

Tax on Gifts for Current Period

Subtract the amount in column E from the amount in column F of the current row and enter here.

H

Used DSUE Amount From Predeceased Spouse(s) and 

Restored Exclusion Amount

Enter the sum of (a) total DSUE amount (if any) received from the estate of the donor's last 

deceased spouse and used by the donor in prior periods and the current period, and (b) 

Restored Exclusion Amount (if any). DSUE may not be applied to gifts made before the DSUE 

arose. Restored Exclusion Amount may not be applied to gifts made before the taxpayer restored 

the exclusion expended on a taxable gift to the taxpayer's same-sex spouse. The Restored 

Exclusion Amount is applied in the first year that the taxpayer restores the exclusion and every 

subsequent year. 

I

Basic Exclusion Amount for Year of Gift

Enter the exclusion amount corresponding with the year listed in column A of the current row. 

(See Table of Basic Exclusion and Credit Amounts.)

J

Applicable Exclusion Amount

Add the amounts in columns H and I of the current row and enter here.

K

Applicable Credit Amount (Based on Amount in Column J)

Using the Table for Computing Gift Tax, determine the credit corresponding to the amount in 

column J of the current row and enter here. For each row in column K, subtract 20% of any 

amount allowed as a specific exemption for gifts made after September 8, 1976, and before 

January 1, 1977.

L

Applicable Credit Amount Used in Prior Periods

Enter the total of the amounts in columns L and N of the previous row.

M

Available Credit in Current Period

Subtract the amount in column L from the amount in column K of the current row and enter here.

N

Credit Allowable

Enter the lesser of column G or column M of the current row.

Repeat this process for each prior year with taxable gifts. Do not enter less than zero.

Instructions for Form 709 (2023) -15-
Example 1. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)

(Three post-1976 years involved. All have the same maximum credit available. Tentative tax exceeds available credit.)

A B C D E F G H I J K L M N

Period Taxable 

Gifts for 

Current 

Period

Taxable 

Gifts for 

Prior 

Periods1

Cumulative 

Taxable Gifts 

Including 

Current 

Period 

(Col. B + Col. 

C)

Tax on 

Gifts for 

Prior 

Periods 

(Col. C)2, 3

Tax on 

Cumulative 

Gifts 

Including 

Current 

Period (Col. 

D)3

Tax on 

Gifts for 

Current 

Period

(Col. F –

Col. E)

DSUE From 

PreDeceased 

Spouse(s) 

and 

Restored 

Exclusion 

Amount

Basic 

Exclusion 

for Year of 

the Gift4

Applicable 

Exclusion 

Amount

(Col. H + 

Col. I)

Applicable 

Credit 

Amount 

Based on 

Column J3, 5

Applicable 

Credit 

Amount 

Used in Prior 

Periods3, 6

Available 

Credit in 

Current 

Period

(Col. K – Col. 

L)

Credit 

Allowable

(lesser of 

Col. G or 

Col. M)

Pre-1977

2004 800,000 0 800,000 0 267,800 267,800 0 1,000,000 1,000,000 345,800 0 345,800 267,800

2007 300,000 800,000 1,100,000 267,800 385,800 118,000 0 1,000,000 1,000,000 345,800 267,800 78,000 78,000

2009 200,000 1,100,000 1,300,000 385,800 465,800 80,000 0 1,000,000 1,000,000 345,800 345,800 0 0

Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) : 345,800

1

 Column C: Enter amount from column D of the previous row.

2

 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.

3

 To compute tax or credit amount, see Table for Computing Gift Tax.

4

 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.

5

 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.

6

 Enter the total of columns L and N of the previous row.

Example 2. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C) 

(Pre-1977 gifts plus 3 post-1976 years: Earlier years' gifts exceed credit then available. Last gift made after credit increased.)

A B C D E F G H I J K L M N

Period Taxable 

Gifts for 

Current 

Period

Taxable 

Gifts for 

Prior 

Periods1

Cumulative 

Taxable Gifts 

Including 

Current 

Period 

(Col. B + Col. 

C)

Tax on 

Gifts for 

Prior 

Periods 

(Col. C)2, 3

Tax on 

Cumulative 

Gifts 

Including 

Current 

Period (Col. 

D)3

Tax on 

Gifts for 

Current 

Period

(Col. F – 

Col. E)

DSUE From 

PreDeceased 

Spouse(s) 

and 

Restored 

Exclusion 

Amount

Basic 

Exclusion 

for Year of 

the Gift4

Applicable 

Exclusion 

Amount

(Col. H + 

Col. I)

Applicable 

Credit 

Amount 

Based on 

Column J3, 5

Applicable 

Credit 

Amount 

Used in Prior 

Periods3, 6

Available 

Credit in 

Current 

Period

(Col. K – Col. 

L)

Credit 

Allowable

(lesser of 

Col. G or 

Col. M)

Pre-1977 200,000 200,000 54,800

1987 600,000 200,000 800,000 54,800 267,800 213,000 0 600,000 600,000 192,800 0 192,800 192,800

1999 200,000 800,000 1,000,000 267,800 345,800 78,000 0 650,000 650,000 211,300 192,800 18,500 18,500

2002 100 1,000,000 1,000,100 345,800 345,840 40 0 1,000,000 1,000,000 345,800 211,300 134,500 40

Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) : 211,340

1

 Column C: Enter amount from column D of the previous row.

2

 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.

3

 To compute tax or credit amount, see Table for Computing Gift Tax.

4

 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.

5

 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.

6

 Enter the total of columns L and N of the previous row.

-16- Instructions for Form 709 (2023)
Example 3. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)

($6M gift exceeds the applicable credit, $5M DSUE received prior to subsequent $4M gift in the same year.)

A B C D E F G H I J K L M N

Period Taxable 

Gifts for 

Current 

Period

Taxable 

Gifts for 

Prior 

Periods1

Cumulative 

Taxable Gifts 

Including 

Current 

Period 

(Col. B + Col. 

C)

Tax on 

Gifts for 

Prior 

Periods 

(Col. C)2, 3

Tax on 

Cumulative 

Gifts 

Including 

Current 

Period (Col. 

D)3

Tax on 

Gifts for 

Current 

Period

(Col. F – 

Col. E)

DSUE From 

PreDeceased 

Spouse(s) 

and 

Restored 

Exclusion 

Amount4

Basic 

Exclusion 

for Year of 

the Gift5

Applicable 

Exclusion 

Amount

(Col. H + 

Col. I)

Applicable 

Credit 

Amount 

Based on 

Column J3, 6

Applicable 

Credit 

Amount 

Used in Prior 

Periods3, 7

Available 

Credit in 

Current 

Period

(Col. K – Col. 

L)

Credit 

Allowable

(lesser of 

Col. G or 

Col. M)

Pre-1977

2011 10,000,000 0 10,000,000 0 3,945,800 3,945,800 4,000,000 5,000,000 9,000,000 3,545,800 0 3,545,800 3,545,800

YYYY

YYYY

Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) : 3,545,800

1

 Column C: Enter amount from column D of the previous row.

2

 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.

3

 To compute tax or credit amount, see Table for Computing Gift Tax.

4

 DSUE may not be applied to gifts made prior to when it arises. Consequently, the available DSUE for the current period is limited to $4,000,000, the value of gifts made after the DSUE arose.

5

 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.

6

 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.

7

 Enter the total of columns L and N of the previous row.

Example 4. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)

(Prior gift exceeds applicable credit, $5M DSUE received prior to subsequent gift.)

A B C D E F G H I J K L M N

Period Taxable 

Gifts for 

Current 

Period

Taxable 

Gifts for 

Prior 

Periods1

Cumulative 

Taxable Gifts 

Including 

Current 

Period 

(Col. B + Col. 

C)

Tax on 

Gifts for 

Prior 

Periods 

(Col. C)2, 3

Tax on 

Cumulative 

Gifts 

Including 

Current 

Period (Col. 

D)3

Tax on 

Gifts for 

Current 

Period

(Col. F – 

Col. E)

DSUE From 

PreDeceased 

Spouse(s) 

and 

Restored 

Exclusion 

Amount

Basic 

Exclusion 

for Year of 

the Gift4

Applicable 

Exclusion 

Amount

(Col. H + 

Col. I)

Applicable 

Credit 

Amount 

Based on 

Column J3, 5

Applicable 

Credit 

Amount 

Used in Prior 

Periods3, 6

Available 

Credit in 

Current 

Period

(Col. K – Col. 

L)

Credit 

Allowable

(lesser of 

Col. G or 

Col. M)

Pre-1977

2002 4,000,000 0 4,000,000 0 1,545,800 1,545,800 0 1,000,000 1,000,000 345,800 0 345,800 345,800

2011 4,000,000 4,000,000 8,000,000 1,545,800 3,145,800 1,600,000 4,000,000 5,000,000 9,000,000 3,545,800 345,800 3,200,000 1,600,000

YYYY

Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) : 1,945,800

1

 Column C: Enter amount from column D of the previous row.

2

 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.

3

 To compute tax or credit amount, see Table for Computing Gift Tax.

4

 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.

5

 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.

6

 Enter the total of columns L and N of the previous row.

Instructions for Form 709 (2023) -17-
Table of Basic Exclusion and Credit Amounts

(as Recalculated for 2023 Rates)

Period Exclusion Amounts Credit Amounts

1977 (Quarters 1 & 2) $30,000 $6,000

1977 (Quarters 3 & 4) $120,667 $30,000

1978 $134,000 $34,000

1979 $147,333 $38,000

1980 $161,563 $42,500

1981 $175,625 $47,000

1982 $225,000 $62,800

1983 $275,000 $79,300

1984 $325,000 $96,300

1985 $400,000 $121,800

1986 $500,000 $155,800

1987 through 1997 $600,000 $192,800

1998 $625,000 $202,050

1999 $650,000 $211,300

2000 and 2001 $675,000 $220,550

2002 through 2010 $1,000,000 $345,800

2011 $5,000,000 $1,945,800

2012 $5,120,000 $1,993,800

2013 $5,250,000 $2,045,800

2014 $5,340,000 $2,081,800

2015 $5,430,000 $2,117,800

2016 $5,450,000 $2,125,800

2017 $5,490,000 $2,141,800

2018 $11,180,000 $4,417,800

2019 $11,400,000 $4,505,800

2020 $11,580,000 $4,577,800

2021 $11,700,000 $4,625,800

2022 $12,060,000 $4,769,800

2023 $12,920,000 $5,113,800

Schedule C. Portability of Deceased 

Spousal Unused Exclusion (DSUE) 

Amount and Restored Exclusion 

Amount

Section 303 of the Tax Relief, Unemployment Insurance 

Reauthorization, and Job Creation Act of 2010 authorized 

estates of decedents dying on or after January 1, 2011, to elect 

to transfer any unused exclusion to the surviving spouse. The 

amount received by the surviving spouse is called the deceased 

spousal unused exclusion, or DSUE, amount. If the executor of 

the decedent's estate elects transfer, or portability, of the DSUE 

amount, the surviving spouse can apply the DSUE amount 

received from the estate of the last deceased spouse (defined 

later) against any tax liability arising from subsequent lifetime 

gifts and transfers at death.

Complete Schedule A before beginning Schedule C.

Note. A nonresident surviving spouse who is not a citizen of the 

United States may not take into account the DSUE amount of a 

CAUTION

!

deceased spouse, except to the extent allowed by treaty with the 

surviving spouse’s country of citizenship.

Last Deceased Spouse Limitation

The last deceased spouse is the most recently deceased person 

who was married to the surviving spouse at the time of that 

person's death. The identity of the last deceased spouse is 

determined as of the day a taxable gift is made and is not 

impacted by whether the decedent's estate elected portability or 

whether the last deceased spouse had any DSUE amount 

available. Remarriage also does not affect the designation of the 

last deceased spouse and does not prevent the surviving 

spouse from applying the DSUE amount to taxable transfers.

When a taxable gift is made, the DSUE amount received from 

the last deceased spouse is applied before the surviving 

spouse's basic exclusion amount. A surviving spouse who has 

more than one predeceased spouse is not precluded from using 

the DSUE amount of each spouse in succession. A surviving 

spouse may not use the sum of DSUE amounts from multiple 

predeceased spouses at one time nor may the DSUE amount of 

a predeceased spouse be applied after the death of a 

subsequent spouse.

When a surviving spouse applies the DSUE amount to a 

lifetime gift, the IRS may examine any return of a predeceased 

spouse whose executor elected portability to verify the allowable 

DSUE amount. The DSUE may be adjusted or eliminated as a 

result of the examination; however, the IRS may make an 

assessment of additional tax on the return of a predeceased 

spouse only within the applicable limitations period under 

section 6501.

Restored Exclusion Amount. Prior to the decision of the 

Supreme Court in United States v. Windsor, 570 U.S. 744, 133 

S. Ct. 2675 (2013), the Defense of Marriage Act (DOMA), Public 

Law 104-199 (110 Stat. 2419), required that marriages of 

couples of the same sex should not be treated as being married 

for federal tax purposes. As a result, taxpayers in a same-sex 

marriage were not entitled to claim a marital deduction for gifts or 

bequests to each other. Those taxpayers were required to use 

their applicable exclusion amount to defray any gift or estate tax 

imposed on the transfer or were required to pay gift or estate 

taxes, to the extent the taxpayer's exclusion previously had been 

exhausted.

In Windsor, the Supreme Court declared that DOMA was 

unconstitutional. For federal tax purposes, marriages of couples 

of the same sex are treated the same as marriages of couples of 

the opposite sex. The term “spouse” includes an individual 

married to a person of the same sex. However, individuals who 

have entered into a registered domestic partnership, civil union, 

or other similar relationship that isn't considered a marriage 

under state law aren't considered married for federal tax 

purposes.

Under a new procedure, a donor who made a transfer to the 

donor's same-sex spouse, which resulted in a reduction of the 

donor's applicable exclusion amount, can now recalculate the 

remaining applicable exclusion. This procedure is only available 

to transfers that did not qualify for the marital deduction for 

federal gift tax purposes at the time of the transfer, based solely 

on the application of DOMA. If the limitations period has expired, 

the donor may recalculate the remaining applicable exclusion. 

However, once the limitations period on assessment of tax has 

expired, neither the value of the transferred interest nor any 

position concerning a legal issue (other than the existence of the 

marriage) related to the transfer can be changed. Similarly, no 

credit or refund of the gift taxes paid on the donor's transfer to 

the donor's same-sex spouse can be given once the limitations 

period on claims for credit or refund has expired.

-18- Instructions for Form 709 (2023)
The first step of the procedure is to determine the amount of 

applicable exclusion that was expended on a taxable gift to a 

same-sex spouse. In any given year, the amount of applicable 

exclusion expended on a taxable gift to a same-sex spouse is 

equal to the amount of applicable exclusion expended on all 

taxable gifts multiplied by the ratio of the amount of taxable gifts 

to the same-sex spouse over total taxable gifts. The amount of 

applicable exclusion expended on all taxable gifts is equal to the 

lesser of the available applicable exclusion or the amount of all 

taxable gifts.

Example. In 2011, A made $5 million of taxable gifts. A made 

a $3 million taxable gift to B, same-sex spouse, and a $2 million 

taxable gift to C, another individual. A's marriage to B was 

recognized by the state where they got married, but was not 

recognized by the federal government. The transfer to B would 

qualify for the marital deduction if A's marriage to B was 

recognized by the federal government. A has a basic exclusion 

of $5 million. A had previously used $1 million of the applicable 

exclusion on other gifts in previous years. This means that A had 

$4 million of applicable exclusion available in 2011. Since A's 

available applicable exclusion ($4 million) is less than the 

amount of all taxable gifts for the year ($5 million), A expended 

all $4 million of the available applicable exclusion on all taxable 

gifts during the year.

Example of Calculation of Restored Exclusion 

Amount

Applicable exclusion 

expended on all 

taxable gifts

x

Taxable gifts to B 

=

Applicable exclusion 

allocable to gifts to B

_______

Total taxable 

gifts

$4 million x

$3 million 

_______ = $2,400,000

$5 million

In 2011, A expended $2,400,000 of the applicable exclusion 

on the taxable gift to B.

The second step of the procedure is to repeat the first step for 

every year where the donor made a taxable gift to a same-sex 

spouse.

The third step of the procedure is to add up the result for all 

the years. The result is the total amount of applicable exclusion 

expended on the same-sex spouse. This amount of applicable 

exclusion will be restored to the donor for use on future gifts and 

bequests and is known as the Restored Exclusion Amount. Enter 

this amount on line 3 of Schedule C.

Attach a statement to Form 709 detailing the calculation of 

the above procedure on the first Form 709 that you claim a 

Restored Exclusion Amount.

The Restored Exclusion Amount will have to be 

accounted for the donor on every subsequent Form 709 

(and Form 706) that will be filed. This means that on all 

future Forms 709 that will be filed, the Restored Exclusion 

Amount will need to be entered on Schedule C. (The Restored 

Exclusion Amount will be entered on line 9c of Part 2—Tax 

Computation on Form 706.) In addition, the Worksheet for 

Schedule B, Column C (Credit Allowable for Prior Periods) 

should reflect the Restored Exclusion Amount. For the period 

where the applicable exclusion was first restored, and on every 

subsequent period listed on the worksheet, add the Restorable 

Exclusion Amount to the total DSUE amount (if any) and enter 

the sum in column H.

Completing Schedule C

Complete Schedule C if the donor is a surviving spouse who 

received a DSUE amount from one or more predeceased 

CAUTION

!

spouses, or if the donor is a taxpayer who made a taxable 

transfer to a same-sex spouse which resulted in a reduction of 

the taxpayer's available applicable exclusion amount (or both).

Schedule C requests information on all DSUE amounts 

received from the donor's last deceased spouse and any 

previously deceased spouses. Each line in the chart should 

reflect a different predeceased spouse. Attach proof of each 

portability election reported on Schedule C.

Part 1. DSUE Received From the Last Deceased 

Spouse

In this Part, include information about the DSUE amount from the 

donor's most recently deceased spouse (whose date of death is 

after December 31, 2010). In column E, enter the total of the 

amount in column D that the donor has applied to gifts in 

previous years and is applying to gifts reported on this return. A 

donor may apply DSUE only to gifts made after the DSUE arose.

Part 2. DSUE Received From Other Predeceased 

Spouse(s)

Enter information about the DSUE amount from the spouse(s), if 

any, who died prior to the donor's most recently deceased 

spouse (but not before January 1, 2011) if the prior spouse's 

executor elected portability of the DSUE amount. In column D, 

indicate the amount of DSUE received from the estate of each 

predeceased spouse. In column E, enter the portion of the 

amount of DSUE shown in column D that was applied to prior 

lifetime gifts or transfers. A donor may apply DSUE only to gifts 

made after the DSUE arose.

Any remaining DSUE from a predeceased spouse 

cannot be applied against tax arising from lifetime gifts if 

that spouse is not the most recently deceased spouse 

on the date of the gift. This rule applies even if the last deceased 

spouse had no DSUE amount or made no valid portability 

election, or if the DSUE amount from the last deceased spouse 

has been fully applied to gifts in previous periods.

Determining the Applicable Credit Amount 

Including DSUE and the Restored Exclusion 

Amount

On line 1, enter the donor's basic exclusion amount; for 2023, 

this amount is $12,920,000. Add the amounts listed in column E 

from Parts 1 and 2 and enter the total on line 2. On line 3, enter 

the Restored Exclusion Amount. On line 4, enter the total of lines 

1, 2, and 3. Using the Table for Computing Gift Tax, determine 

the donor's applicable credit by applying the appropriate tax rate 

to the amount on line 4. Enter this amount on line 5 and on line 7 

of Part 2—Tax Computation.

Schedule D. Computation of GST Tax

Part 1—Generation-Skipping Transfers

Enter in Part 1 all of the gifts you listed in Part 2 of Schedule A, in 

the same order and showing the same values. If reporting the 

GST portion of transfers subject to an ETIP, see How to report 

GSTs after the close of an ETIP, later.

Column A

List items from Schedule A, Part 2, column A, in the same order. 

Next, list items to be reported on Schedule D (including ETIP 

transfers), if any.

CAUTION

!

Instructions for Form 709 (2023) -19-
Column B

Only provide descriptions for ETIP transfers; otherwise, leave 

blank.

Column D

You are allowed to claim the gift tax annual exclusion currently 

allowable for your reported direct skips (other than certain direct 

skips to trusts—see Note below) using the rules and limits 

discussed earlier for the gift tax annual exclusion. However, you 

must allocate the exclusion on a gift-by-gift basis for GST 

computation purposes. You must allocate the exclusion to each 

gift, to the extent desired but not exceeding the maximum 

allowable amount, in chronological order, beginning with the 

earliest gift that qualifies for the exclusion. Be sure that you do 

not claim a total exclusion of more than $17,000 per donee.

Note. You may not claim any annual exclusion for a transfer 

made to a trust unless the trust meets the requirements 

discussed under Part 2—Direct Skips, earlier.

How to report GSTs after the close of an ETIP. If you are 

reporting a GST that occurred because of the close of an ETIP, 

complete Part 1 as follows.

Column B. For transfers subject to an ETIP only, describe 

each transfer as provided in the instructions for Part 1 of 

Schedule A. In addition, describe the interest that is closing the 

ETIP, explain what caused the interest to terminate, list the date 

the ETIP closed, and list the year the gift portion of the transfer 

was reported and its item number on Schedule A that was 

originally filed to report the gift portion of the ETIP transfer.

Column C. 

1. If the GST exemption is being allocated on a timely filed 

(including extensions) gift tax return, enter the value as of 

the close of the ETIP.

2. If the GST exemption is being allocated on a late-filed (past 

the due date including extensions) gift return, enter the 

value as of the date the gift tax return was filed.

Part 2—GST Exemption Reconciliation

Line 1

Every donor is allowed a lifetime GST exemption. The amount of 

the exemption for 2023 is $12,920,000. For transfers made 

through 1998, the GST exemption was $1 million. The exemption 

amounts for 1999 through 2023 are as follows.

Year Amount

1999 ......................... $1,010,000

2000 ......................... $1,030,000

2001 ......................... $1,060,000

2002 ......................... $1,100,000

2003 ......................... $1,120,000

2004 and 2005 ................... $1,500,000

2006, 2007, and 2008 ............... $2,000,000

2009 ......................... $3,500,000

2010 and 2011 ................... $5,000,000

2012 ......................... $5,120,000

2013 ......................... $5,250,000

2014 ......................... $5,340,000

2015 ......................... $5,430,000

2016 ......................... $5,450,000

2017 ......................... $5,490,000

2018 ......................... $11,180,000

2019 ......................... $11,400,000

2020 ......................... $11,580,000

2021 ......................... $11,700,000

2022 ......................... $12,060,000

2023 ......................... $12,920,000

In general, each annual increase can only be allocated to 

transfers made (or appreciation occurring) during or after the 

year of the increase.

Example. A donor made $1,750,000 in direct-skip GSTs 

through 2005, and allocated all $1,500,000 of the exemption to 

those transfers. In 2023, the donor makes a $2,000,000 taxable 

GST. The donor can allocate $2,000,000 of exemption to the 

2023 transfer but cannot allocate the $9,420,000 of unused 2023 

exemption to pre-2023 transfers.

However, if in 2005, the donor made a $1,750,000 transfer to 

a trust that was not a direct skip, but from which GSTs could be 

made in the future, the donor could allocate the increased 

exemption to the trust, even though no additional transfers were 

made to the trust. See Regulations section 26.2642-4 for the 

redetermination of the applicable fraction when additional 

exemption is allocated to the trust.

Keep a record of your transfers and exemption allocations to 

make sure that any future increases are allocated correctly.

Enter on line 1 of Part 2 the maximum GST exemption you are 

allowed. This will not necessarily be the highest indexed amount 

if you made no GSTs during the year of the increase.

The donor can apply this exemption to inter vivos transfers 

(that is, transfers made during the donor's life) on Form 709. The 

executor can apply the exemption on Form 706 to transfers 

taking effect at death. An allocation is irrevocable.

In the case of inter vivos direct skips, a portion of the donor's 

unused exemption is automatically allocated to the transferred 

property unless the donor elects otherwise. To elect out of the 

automatic allocation of exemption, you must file Form 709 and 

attach a statement to it clearly describing the transaction and the 

extent to which the automatic allocation is not to apply. Reporting 

a direct skip on a timely filed Form 709 and paying the GST tax 

on the transfer will prevent an automatic allocation.

Special QTIP election. If you elect QTIP treatment for any gifts 

in trust listed on Schedule A, then on Schedule D you may also 

elect to treat the entire trust as non-QTIP for purposes of the 

GST tax. The election must be made for the entire trust that 

contains the particular gift involved on this return. Be sure to 

identify the item number of the specific gift for which you are 

making this special QTIP election.

-20- Instructions for Form 709 (2023)
Line 5

Enter the amount of GST exemption you are applying to transfers 

reported in Part 3 of Schedule A.

Section 2632(c) provides an automatic allocation to indirect 

skips of any unused GST exemption. The unused exemption is 

allocated to indirect skips to the extent necessary to make the 

inclusion ratio zero for the property transferred. You may elect 

out of this automatic allocation as explained in the instructions 

for Part 3.

Line 6

Notice of Allocation. You may wish to allocate GST exemption 

to transfers not reported on this return, such as a late allocation.

To allocate your exemption to such transfers, attach a 

statement to this Form 709 and entitle it “Notice of Allocation.” 

The notice must contain the following for each trust (or other 

transfer).

• Clear identification of the trust, including the trust's EIN, if 

known.

• If this is a late allocation, the year the transfer was reported 

on Form 709.

• The value of the trust assets at the effective date of the 

allocation.

• The amount of your GST exemption allocated to each gift (or 

a statement that you are allocating exemption by means of a 

formula such as “an amount necessary to produce an 

inclusion ratio of zero”).

• The inclusion ratio of the trust after the allocation.

Total the exemption allocations and enter this total on line 6.

Note. Where the property involved in such a transfer is subject 

to an ETIP, an allocation of the GST exemption at the time of the 

transfer will only become effective at the end of the ETIP. For 

details, see Transfers Subject to an Estate Tax Inclusion Period 

(ETIP), earlier, and section 2642(f).

Part 3—Tax Computation

You must enter in Part 3 every gift you listed in Part 1 of 

Schedule D.

Column C

You are not required to allocate your available exemption. You 

may allocate some, all, or none of your available exemption, as 

you wish, among the gifts listed in Part 3 of Schedule D. 

However, the total exemption claimed in column C may not 

exceed the amount you entered on line 3 of Part 2 of 

Schedule D.

Column D

Carry your computation to 3 decimal places (for example, 

“1.000”).

Part 2—Tax Computation (Page 1 of 

Form 709)

Lines 4 and 5

To compute the tax for the amount on line 3 (to be entered on 

line 4) and the tax for the amount on line 2 (to be entered on 

line 5), use the Table for Computing Gift Tax.

Line 7

The applicable credit (formerly unified credit) amount is the 

tentative tax on the applicable exclusion amount. For gifts made 

in 2023, the applicable exclusion amount equals:

• The basic exclusion amount of $12,920,000, PLUS

• Any DSUE amount, PLUS

• Any Restored Exclusion Amount.

If you are a citizen or resident of the United States, you must 

apply any available applicable credit against gift tax. If you are 

not eligible to use a DSUE amount from a predeceased spouse, 

or Restored Exclusion Amount on taxable gifts made to a 

same-sex spouse, enter $5,113,800 on line 7. Nonresidents not 

citizens of the United States may not claim the applicable credit 

and should enter zero on line 7.

If you are eligible to use a DSUE amount from a predeceased 

spouse or a Restored Exclusion Amount for taxable gifts to a 

same-sex spouse (or both), complete Schedule C—Deceased 

Spousal Unused Exclusion (DSUE) Amount and enter the 

amount from line 5 of that schedule on line 7 of Part 2—Tax 

Computation.

Table for Computing Gift Tax

Column A Column B Column C Column D

Taxable

 amount

 over—

Taxable

 amount

 not over—

Tax on

 amount in

 column A

Rate of tax

 on excess

 over amount

 in column A

- - - - - $10,000 - - - - - 18%

$10,000 20,000 $1,800 20%

20,000 40,000 3,800 22%

40,000 60,000 8,200 24%

60,000 80,000 13,000 26%

80,000 100,000 18,200 28%

100,000 150,000 23,800 30%

150,000 250,000 38,800 32%

250,000 500,000 70,800 34%

500,000 750,000 155,800 37%

750,000 1,000,000 248,300 39%

1,000,000 - - - - - 345,800 40%

Instructions for Form 709 (2023) -21-
Determine the tentative tax on the applicable exclusion 

amount using the rates in the Table for Computing Gift Tax, and 

enter the result on line 7.

Line 10

Enter 20% of the amount allowed as a specific exemption for 

gifts made after September 8, 1976, and before January 1, 1977. 

(These amounts will be among those listed in Schedule B, 

column D, for gifts made in the third and fourth quarters of 1976.)

Line 13

Gift tax conventions are in effect with Australia, Austria, 

Denmark, France, Germany, Japan, and the United Kingdom. If 

you are claiming a credit for payment of foreign gift tax, figure the 

credit and attach the calculation to Form 709, along with 

evidence that the foreign taxes were paid. See the applicable 

convention for details of computing the credit.

Line 19

Make your check or money order payable to “United States 

Treasury” and write the donor's SSN on it. You may not use an 

overpayment on Form 1040 or 1040-SR to offset the gift and 

GST taxes owed on Form 709.

No checks of $100 million or more accepted. The IRS 

cannot accept a single check (including a cashier's check) for 

amounts of $100,000,000 ($100 million) or more. If you're 

sending $100 million or more by check, you'll need to spread the 

payments over two or more checks, with each check made out 

for an amount less than $100 million. The $100 million or more 

amount limit does not apply to other methods of payment (such 

as electronic payments), so please consider paying by means 

other than checks.

Signature

As a donor, you must sign the return. If you pay another person, 

firm, or corporation to prepare your return, that person must also 

sign the return as preparer unless that person is your regular 

full-time employee.

Remember, if you and your spouse have consented to split 

gifts, your spouse must also sign and date the return in Part 1, 

line 18.

Third-party designee. If you want to allow the return preparer 

(listed on the bottom of page 1 of Form 709) to discuss your 

2023 Form 709 with the IRS, check the “Yes” box to the far right 

of your signature on page 1 of your return.

If you check the “Yes” box, you (and your spouse, if splitting 

gifts) are authorizing the IRS to call your return preparer to 

answer questions that may arise during the processing of your 

return. You are also authorizing the return preparer of your 2023 

Form 709 to:

• Give the IRS any information that is missing from your return;

• Call the IRS for information about the processing of your 

return or the status of your payment(s);

• Receive copies of notices or transcripts related to your 

return, upon request; and

• Respond to certain IRS notices about math errors, offsets, 

and return preparation.

You are not authorizing your return preparer to receive any 

refund check, to bind you to anything (including any additional 

tax liability), or otherwise represent you before the IRS. If you 

want to expand the authorization of your return preparer, see 

Pub. 947, Practice Before the IRS and Power of Attorney.

The authorization will automatically end 3 years from the date 

of filing Form 709. If you wish to revoke the authorization before it 

ends, see Pub. 947.

Disclosure, Privacy Act, and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal 

Revenue laws of the United States. We need the information to figure and collect the right amount of tax. Form 709 is used to report (1) 

transfers subject to the federal gift and certain GST taxes and to figure the tax, if any, due on those transfers; and (2) allocations of the 

lifetime GST exemption to property transferred during the transferor's lifetime.

Our legal right to ask for the information requested on this form is found in sections 6001, 6011, 6019, and 6061, and their 

regulations. You are required to provide the information requested on this form. Section 6109 requires that you provide your identifying 

number.

Generally, tax returns and return information are confidential, as stated in section 6103. However, section 6103 allows or requires 

the Internal Revenue Service to disclose or give such information shown on your Form 709 to the Department of Justice to enforce the 

tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths and territories for use in 

administering their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies 

to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.

We may disclose the information on your Form 709 to the Department of the Treasury and contractors for tax administration 

purposes; and to other persons as necessary to obtain information that we cannot get in any other way for purposes of determining the 

amount of or to collect the tax you owe. We may disclose the information on your Form 709 to the Comptroller General to review the 

Internal Revenue Service. We may also disclose the information on your Form 709 to Committees of Congress; federal, state, and 

local child support agencies; and to other federal agencies for the purpose of determining entitlement for benefits or the eligibility for, 

and the repayment of, loans.

If you are required to but do not file a Form 709, or do not provide the information requested on the form, or provide fraudulent 

information, you may be charged penalties and be subject to criminal prosecution.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form 

displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents 

may become material in the administration of any Internal Revenue law.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:

-22- Instructions for Form 709 (2023)
Recordkeeping ...................................................... 52 min.

Learning about the law or the form......................................... 1 hr., 53 min.

Preparing the form ................................................... 2 hr., 21 min.

Copying, assembling, and sending the form to the IRS ........................... 1 hr., 3 min.

Comments and suggestions. We welcome your comments about this publication and suggestions for future editions.

You can send us comments through IRS.gov/FormComments. Or you can write to the Internal Revenue Service, Tax Forms and 

Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Although we can't respond individually to each comment received, we do appreciate your feedback and will consider your 

comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or 

payments to the above address. Instead, see Where To File, earlier.

Instructions for Form 709 (2023) -23-